SML - Synlait

[CG]

Begs the question then as to what they are going to do with the plant if they sell the milk supply to Open Country Dairy.

I think you have it backwards. "Open Country Dairy is expected to sign a deal to purchase Synlait Milk's North Island milk supply" which in simple language means they may or may not. I have no doubt that as part of review Synlait approached Open County and offered them to take over the supply on condition if the plant is sold or something but not otherwise

[Minimoke]

Report values Auckland at
$57m for land and buildings
$31 - $44m for plan and equipment salvage costs.
Total $88 - $101.

They are also valuing Dairyworks at $85 - $95m.

[Teitei]

I think you have it backwards. "Open Country Dairy is expected to sign a deal to purchase Synlait Milk's North Island milk supply" which in simple language means they may or may not. I have no doubt that as part of review Synlait approached Open County and offered them to take over the supply on condition if the plant is sold or something but not otherwise

Fair enough.

I read "is expected" as much stronger than "is negotiating".

[CG]

Fair enough.

I read "is expected" as much stronger than "is negotiating".

I'd say it's rather "conditional".
The irony is that a2 sources their new formula "a2 Gold" from Yashili next door from Synlait Pokeno.
I don't think a2 will be interested in Pokeno as it has too much capacity to handle

[Breezy]

Down over 5% but that 43c A2 discount price providing support.

[Breezy]

Looks like a bigger punter exiting today the way the sell line has been layered.

[Left Field]

The Northington report on SML makes interesting reading.......( if there are any retail SML shareholders left to be interested!??)

https://www.synlait.com/wp-content/uploads/2024/08/SML-Independent-Advisers-Report-20-August-2024-FINAL.pdf

[Breezy]

The Northington report on SML makes interesting reading.......( if there are any retail SML shareholders left to be interested!??)

https://www.synlait.com/wp-content/uploads/2024/08/SML-Independent-Advisers-Report-20-August-2024-FINAL.pdf

Midpoint value of 64c, whats not to like, thats not a question.

[Basil]

if there are any retail SML shareholders left to be interested!??)

YAWN  https://www.youtube.com/watch?v=GJwW8GlqNFk

[Teitei]

YAWN  https://www.youtube.com/watch?v=GJwW8GlqNFk

Yup - game's over for SML.

There were fantastic gains to be made (especially when the bonds were trading at over 100% yield) but without a pro-rata CR, SML with 85% ownership by Bright & ATM is no go territory.

[Breezy]

Yup - game's over for SML.

There were fantastic gains to be made (especially when the bonds were trading at over 100% yield) but without a pro-rata CR, SML with 85% ownership by Bright & ATM is no go territory.

Dont count on it, retail punters could very well get their shares taken off their hands at a much higher price than 40c or failing that the sp will rise as the Phoenix rises from the ashes. I'm in for a decent sized but calculated punt.

[Basil]

Dont count on it, retail punters could very well get their shares taken off their hands at a much higher price than 40c or failing that the sp will rise as the Phoenix rises from the ashes. I'm in for a decent sized but calculated punt.

Good luck hoping the CCP plays fair.  How are the people in Tibet getting on...just a thought.

[Breezy]

Good luck hoping the CCP plays fair.  How are the people in Tibet getting on...just a thought.

If they want the retail shares they will have to pay an acceptable price for them unless the company goes under which is extremely unlikely now, apart from that they can't force a sale.
Its not about playing fair, they are currently bound by rules they can't break and it would not be in their favour to try if they want milk for their people.
My opinion is they will buy the retail shares at a premium to current sp in due course.

[Basil]

There's nothing about the current placement that's fair to minority shareholders and nothing to suggest their treatment in the future will be any better. 

[Breezy]

There's nothing about the current placement that's fair to minority shareholders and nothing to suggest their treatment in the future will be any better. 

If they want what will be 15% of retail shares after the recap then they will have to pay for them or wind up, even if they delisted they still wouldn't own them. I agree its not fair to minority shareholders who paid above current sp but life isn't fair, ask me how I know.