SML - Synlait

[Minimoke]

Takeover Panle has said
"The Panel considered that each of a2MC and Bright were acting in pursuit of their respective commercial interests, rather than as part of a coordinated strategy relating to control over voting rights. "

And I am sure A2 and Bright are acting in pursuit of their respective commercial interests.

Trouble is, as I see it, those commercial interests are reliant on each party supporting the other. I didnt see this as a battle over control of voting rights.

And I'm not sure the commercial interest could be met in a liquidation event. After all the Independent report said "We note that Synlait would retain its SAMR registration in an insolvency event but there may be a risk that the relevant Chinese authorities could revoke the registration if insolvency had a serious impact on product quality or standards of the registration. "

[Basil]

Takeover Panle has said
"The Panel considered that each of a2MC and Bright were acting in pursuit of their respective commercial interests, rather than as part of a coordinated strategy relating to control over voting rights. "

That's actionable and appealable.  Their commercial interests are quite obviously inextricably intermingled, and they have acted in concert.  High court judges would have a field day with the ineptitude shown by the NZX here.  I hope the "so called" independent director's professional indemnity insurance is fully paid up because the conduct there is an absolute bloody disgrace.
NZX found the parties are not associated...oh please...give me a break, that's beyond pathetic   

[Minimoke]

That's actionable and appealable.  Their commercial interests are quite obviously inextricably intermingled, and they have acted in concert.  High court judges would have a field day with the ineptitude shown by the NZX here.  I hope the "so called" independent director's professional indemnity insurance is fully paid up because the conduct there is an absolute bloody disgrace.
NZX found the parties are not associated...oh please...give me a break, that's beyond pathetic   

Bright dairy has even publicly said "our decision to invest at this critical juncture reflects our long-term commitment to Synlait, its shareholders, "

Since when does one shareholder have obligations to other shareholders? Why would Bright be committed to A2 if there was no commercial benefit between the two.  You cant tell me the Chinese are doing this out of the kindness of their hearts.

[winner (n)]

Build it and the milk will come

Seems not to be the case for Pokeno

What a disaster

https://api.nzx.com/public/announcement/437637/attachment/426704/437637-426704.pdf

[Minimoke]

Build it and the milk will come

Seems not to be the case for Pokeno

What a disaster

https://api.nzx.com/public/announcement/437637/attachment/426704/437637-426704.pdf

Yashili, who are across the road, seem to be able to make it work.

So, the "new international customer" was the savour knight in shining armour after all.

We all should know by now that text books will be written about Synlait. I reckon there could be one book all on its own on Pokeno. Gosh, don't we remember "Currently an undeveloped site in New Zealand's North Island, Synlait expects to invest around $260 million in the coming years as we establish our infant base powder manufacturing capability at the site."

So, how much of a write down in asset value can we expect of the raw milk processing facilities. Essentially I guess it has to go to $0.00

And how much advanced nutrition products that do not require raw milk do they do?

Can someone tell me what " plant-based proteins" are?

We could also ask, with three Bright Directors on the Board in 2018, is further Bright control a great idea?

[BlackPeter]

Yashili, who are across the road, seem to be able to make it work.

So, the "new international customer" was the savour knight in shining armour after all.

We all should know by now that text books will be written about Synlait. I reckon there could be one book all on its own on Pokeno. Gosh, don't we remember "Currently an undeveloped site in New Zealand's North Island, Synlait expects to invest around $260 million in the coming years as we establish our infant base powder manufacturing capability at the site."

So, how much of a write down in asset value can we expect of the raw milk processing facilities. Essentially I guess it has to go to $0.00

And how much advanced nutrition products that do not require raw milk do they do?

Can someone tell me what " plant-based proteins" are?

We could also ask, with three Bright Directors on the Board in 2018, is further Bright control a great idea?

Can someone tell me what " plant-based proteins" are?

Actually - many proteins are plant based, but I would assume they might refer to proteins from peanuts, almonds, soybeans, various grains (like oats) and whatever else people use to produce plant based "milk".

It actually is a growing industry ... but whether they have a business case for Pokeno to produce this sort of stuff I would not know (and I suspect they don't know either).

[Minimoke]

Can someone tell me what " plant-based proteins" are?

Actually - many proteins are plant based, but I would assume they might refer to proteins from peanuts, almonds, soybeans, various grains (like oats) and whatever else people use to produce plant based "milk".

It actually is a growing industry ... but whether they have a business case for Pokeno to produce this sort of stuff I would not know (and I suspect they don't know either).

Thansk . I thought it might be something like that. But I ended up confused because I dont recall seeing a definition in any of Synlaits reports. And I though pokeno was set up sole to process fresh milk. And then primally turn it into milk powder. both blended and into tins.

Given the Waikato is mainly into agriculture I wonder where they are going to source these plant based proteins from.

[Minimoke]

Synlait are really good at shooting themsleves in teh foot.

On none hand they say 'In addition, it found that transportation and a number of manufacturing costs mean it is not financially viable for Synlait to keep processing milk at Pokeno"

And on the other they say "The Board will not actively seek a buyer for Pokeno, however in the event a compelling offer was made for the asset, the company may consider it."

You wouldn't put in a compelling offer for a milk processing plant. Which only leaves scrap stainless value.

[BlackPeter]

Thansk . I thought it might be something like that. But I ended up confused because I dont recall seeing a definition in any of Synlaits reports. And I though pokeno was set up sole to process fresh milk. And then primally turn it into milk powder. both blended and into tins.

Given the Waikato is mainly into agriculture I wonder where they are going to source these plant based proteins from.

I agree that it is a terrible waste to first build a plant to process fresh milk and then mothball the bit which turns fresh milk into milk powder.

I suspect however they can re-use the later parts of the system used for blending milk powder and tinning the lot.

Nobody claims that building Pokeno was a great business decision, I assume they just try to cut their losses ...

[Minimoke]

I agree that it is a terrible waste to first build a plant to process fresh milk and then mothball the bit which turns fresh milk into milk powder.

I suspect however they can re-use the later parts of the system used for blending milk powder and tinning the lot.

Nobody claims that building Pokeno was a great business decision, I assume they just try to cut their losses ...

I thought blending and canning was part of Aucklands Richard Pearce Drive. Which they have already sold and now lease back.

And look how far they have moved from "Doing milk differently for a healthier world"

Is it now "Doing plants differently for a healthier world"

[BlackPeter]

I thought blending and canning was part of Aucklands Richard Pearce Drive. Which they have already sold and now lease back.

And look how far they have moved from "Doing milk differently for a healthier world"

Is it now "Doing plants differently for a healthier world"

But we have to give them that they still use this funny pink font for their publications.


Clearly - they are consistent, we have to give them that !

[Basil]

A cynic might suggest the whole Pokeno fiasco was a cunning plan to get the company deep into doggy doo so the Chinese could take the company over really cheaply.

[BlackPeter]

A cynic might suggest the whole Pokeno fiasco was a cunning plan to get the company deep into doggy doo so the Chinese could take the company over really cheaply.

Need to check out this theory with John Penno when I meet him next time ;

But yes - I see where you are coming from.

[Minimoke]

A cynic might suggest the whole Pokeno fiasco was a cunning plan to get the company deep into doggy doo so the Chinese could take the company over really cheaply.

It was very odd right from the beginning. From the very short time the land came to market, their purchase and then getting consents to build. And that's not even taking into account the covenant fiasco (with links to china) and the builder going into liquidation

[mcdongle]

They signed a deal with Abbott Laboratories to make a plant based Baby Formula.
https://www.synlait.com/news/synlait-signs-new-multinational-customer-agreement/

https://www.abbottnutrition.com/our-products/similac-soy-isomil-20#:~:text=SIMILAC%20SOY%20ISOMIL%20is%20a,for%20infants%20of%20vegetarian%20families.

It is made using the same dryer as for Milk based products.
When switching from Milk based to Plant based , The entire system has to be cleaned so there is no trace of Dairy or the plant based product will be rejected.