Synlait Milk chairman Simon Robertson resigns; Paul McGilvary elected acting chair

Paul McGilvary has been appointed acting chair of Synlait Milk until a permanent replacement for Simon Robertson is found. Photo / NZ Herald

Synlait Milk chair and independent director Simon Robertson is stepping down, having held the chairmanship for less than a year.

The announcement was published on the Australian Stock Exchange on Monday – a public holiday in New Zealand.

Synlait didn’t elaborate on why Robertson resigned, but said the move would take effect immediately.

One of the company’s independent directors, Paul McGilvary, has been elected the acting chair until a permanent replacement for Robertson is found.

Synlait said McGilvary had the full support of the board, and the search for an independent director to fill the vacancy would begin straight away.

“On behalf of the board, I would like to thank Simon for his contribution to Synlait. We wish Simon well with his future endeavours,” McGilvary said.

Robertson’s departure comes less than a year after he took the chairmanship from one of the company founders, John Penno, who stepped into the role as a part of a plan to steer the milk processor back to profitability.

Robertson, who joined Synlait’s board in 2020, is a professional company director. Meanwhile, McGilvary was appointed to the board in January 2022.

Cash-strapped Synlait is trying to sell its Dairyworks business to pay down debt.

In the meantime, its biggest customer, a2 Milk, is looking to reduce its reliance on Synlait by investing more in its Mataura Valley Milk plant in Southland.

Synlait is 20 per cent owned by a2 Milk and about 40 per cent by China’s Bright Dairy. Former Finance Minister Ruth Richardson sits on the Synlait board as a Bright appointee.

Synlait was hit hard by the Covid-19 pandemic, which took the company into loss.

It has in recent years expanded heavily through acquisitions and by building extensive manufacturing facilities at Pokeno, at the end of Auckland’s Southern Motorway.

Analysts estimate the business is worth around $150 million.

It has $180m in bonds, which fall due December 2024. They last traded at 16.85 per cent.

As part of a refinancing deal announced last month, Synlait undertook to repay $130m in debt no later than March 31, 2024.

In its latest result, Synlait Milk said its annual net loss came to $4.3m, while its net debt jumped by 21 per cent to $413.5m.