SML - Synlait

[Minimoke]

On a totally different side note. I wonder who had the wisdom and foresight to sell on 15 Dec, a week before the 22 Dec announcement. I bet the new owner isn't so happy now. Next Annual report will be interesting to see if Pennos name is still on the list of top shareholders.

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[Teitei]

I'm still waiting for the OCA CR he predicted yonks ago, broken clock mentality.

CR which OCA avoided by stopping dividends, putting assets for sale and stalling developments.

You should have taken note and saved yourself a lot of grief because the sp then was over 70c at the time.

What is OCA's sp now?

Ouch!

Ouch!

[Teitei]

You've been saying that for ages. But the capital raise isn't a new idea. Market has had plenty of time to adapt. I reckon the market is finally realising its better to get $0.25 in the hand now than $0.0025 on the books after the cap raise.

Have a look at Sky TV CR - the answer is there for those with eyes to see.

Going to be plenty of money to be made in SML when they announce the CR (as indicated by SML to be in July/August) - as was the case with Sky TV.

[Minimoke]

Have a look at Sky TV CR - the answer is there for those with eyes to see.

Going to be plenty of money to be made in SML when they announce the CR (as indicated by SML to be in July/August) - as was the case with Sky TV.

Sorry - I'm more interested in Synlait.

So. How much will the cap raise be. Amd at what price.

I see $180m payable in 6 months and another $130m in a year. In a loss making company.

[Breezy]

CR which OCA avoided by stopping dividends, putting assets for sale and stalling developments.

You should have taken note and saved yourself a lot of grief because the sp then was over 70c at the time.

What is OCA's sp now?

Ouch!

Ouch!

My avg buy price is $1.40 so just over 70c no go from my viewpoint and basically no grief saved.

[Teitei]

My avg buy price is $1.40 so just over 70c no go from my viewpoint and basically no grief saved.

$1.40!

Writing was on the wall and you held all the way to now?

Could have still sold at 70c and bought back 25% more shares at 53c.

Ouch!

[Teitei]

Sorry - I'm more interested in Synlait.

So. How much will the cap raise be. Amd at what price.

I see $180m payable in 6 months and another $130m in a year. In a loss making company.

History repeating itself.

And I am more interested in Synlait now too.

I gave my answer already in a previous post.

[Breezy]

$1.40!

Writing was on the wall and you held all the way to now?

Could have still sold at 70c and bought back 25% more shares at 53c.

Ouch!

I think you take great pleasure in other peoples sufferings, not the person I am or want to be.

[Minimoke]

History repeating itself.

And I am more interested in Synlait now too.

I gave my answer already in a previous post.

Thats not very helpful - you have 346 posts to trawl through.

[Teitei]

Thats not very helpful - you have 346 posts to trawl through.

Cannot be clearer about the CR than from the announcement yesterday :

Proposed equity capital raising to help reset Synlait's
balance sheet

To ensure that Synlait's balance sheet is reset, Synlait is
planning to undertake an equity capital raising. Bright
Dairy has indicated it fully supports Synlait raising equity
capital, subject to terms being finalised, and all necessary
approvals being received, to more substantially re-set the
company's equity and debt position to provide a platform
to return to sustainable growth for Synlait farmer suppliers
and all shareholders. The Synlait Board and its advisers are
continuing to progress the structure, terms and conditions
of a proposed equity raising and will further update
shareholders by the end of August, possibly earlier, by
market announcement.

In connection with the proposed equity raising, Synlait
is also proposing to concurrently refinance its Bank
Facilities. As part of that refinancing Synlait will be
seeking amended facilities that, upon the completion of
the equity raising, will be available to be drawn to meet
Synlait's expected working capital and other corporate
requirements as well as allowing for the repayment of
the Bonds. Further information will be provided about the
refinancing once arrangements have been agreed with
the banks.

[Teitei]

I think you take great pleasure in other peoples sufferings, not the person I am or want to be.

Your reply says more about you than it does about me.

I don't take great pleasure in other people's suffering but if anyone chooses to take me on, expect an appropriately factual,  truthful and direct reply.

Which part of my reply regarding OCA did you disagree with?

[Minimoke]

Cannot be clearer about the CR than from the announcement yesterday :

Proposed equity capital raising to help reset Synlait's
balance sheet

To ensure that Synlait's balance sheet is reset, Synlait is
planning to undertake an equity capital raising. Bright
Dairy has indicated it fully supports Synlait raising equity
capital, subject to terms being finalised, and all necessary
approvals being received, to more substantially re-set the
company's equity and debt position to provide a platform
to return to sustainable growth for Synlait farmer suppliers
and all shareholders. The Synlait Board and its advisers are
continuing to progress the structure, terms and conditions
of a proposed equity raising and will further update
shareholders by the end of August, possibly earlier, by
market announcement.

In connection with the proposed equity raising, Synlait
is also proposing to concurrently refinance its Bank
Facilities. As part of that refinancing Synlait will be
seeking amended facilities that, upon the completion of
the equity raising, will be available to be drawn to meet
Synlait's expected working capital and other corporate
requirements as well as allowing for the repayment of
the Bonds. Further information will be provided about the
refinancing once arrangements have been agreed with
the banks.

That goes nowhere near answering at what price and how much. Both critical so  current holders can get their head around the amount of dilution they have to look forward to.

[Left Field]

Another respected view from HC thread and Werdplayer.....

What is the best outcome for salvaging some value for Synlait's minor shareholders?

If the loan is approved, they avoid liquidation but will have the value of their holdings more or less wiped anyway by equity raising. By my calculation, any equity raising would probably push the SP sub 10c.

By contrast, if the loan isn't approved and Synlait misses the $130M payment, the company will cease trading and begin an insolvency process.

Sounds bad, but in Bright and A2 Milk you have two parties with a vested interest in the company and its assets. One or both of them will step in, and there's a good chance that would require buying out the minor shareholders at a much higher price then if equity raising were to occur.

When I think it through, I can't see any rational reason why shareholders would want to approve this loan.

[Breezy]

Your reply says more about you than it does about me.

I don't take great pleasure in other people's suffering but if anyone chooses to take me on, expect an appropriately factual,  truthful and direct reply.

Which part of my reply regarding OCA did you disagree with?

Well yes I hope it does, compassion and mercy are two qualities I'm happy to own. Continually putting words like Ouch at the end of your posts says it all.

[winner (n)]

I found the bit about the banks wanting to see minimum ebitda of $45m for FY24 interesting ...hope they meet guidance then