SML - Synlait

[Breezy]

I just got 113 pages of documents from SML even though I voted online a couple of weeks ago, not too friendly on the trees I would have thought but never mind because we have a lovely bright pink B Corp Certified thing on the last page so all good.

[BlackPeter]

I just got 113 pages of documents from SML even though I voted online a couple of weeks ago, not too friendly on the trees I would have thought but never mind because we have a lovely bright pink B Corp Certified thing on the last page so all good.

Pretty sure that the communication option you chose with your registry hasn't anything to do with whether you voted already or not.

They are legally required to send you the info (i.e. blame the government), and if you tell them that you want snail mail (which happens to be the legal default) or don't ask them to use an environmentally friendlier alternative, than they have to send you snail mail. Only you to blame about destroying our forests.

But anyway - I chose to sell the shares before they had to cut down all these trees to print all the materials. Way to go!

[Breezy]

Pretty sure that the communication option you chose with your registry hasn't anything to do with whether you voted already or not.

They are legally required to send you the info (i.e. blame the government), and if you tell them that you want snail mail (which happens to be the legal default) or don't ask them to use an environmentally friendlier alternative, than they have to send you snail mail. Only you to blame about destroying our forests.

But anyway - I chose to sell the shares before they had to cut down all these trees to print all the materials. Way to go!

I don't get snail mail for anything these days(Electronic option ticked universally) they must have just decided I needed to read a pink and white book.

[Minimoke]

Slightly off topic. Synlait employees get a day off work a year to plant trees.

Newly planted trees absorb a heck of a lot of CO2 and pump out O2 - critical for human survival

Aged trees keep people in the central north island employed.

Snail mail is a win win for every one.

On the other hand, email communications just suck the life out of our electrical generation and supply system.

[Basil]

Gosh, they still have a VAST debt burden, ($450m this facility plus $130m from Bright = $580m), even after this capital raise and its notable the new banking syndicate have them on a VERY short leash with the new facility only being for 12 months.  A company still very much on its knees is how I see it despite this capital injection which is on top of the previous $200m capital raise a few years ago.  https://www.nzx.com/announcements/438029

[Breezy]

Price is spiking on anticipation of rescue package going through tomorrow, might get to 50c odd after confirmation.

[Minimoke]

Gosh, they still have a VAST debt burden, ($450m this facility plus $130m from Bright = $580m), even after this capital raise and its notable the new banking syndicate have them on a VERY short leash with the new facility only being for 12 months.  A company still very much on its knees is how I see it despite this capital injection which is on top of the previous $200m capital raise a few years ago.  https://www.nzx.com/announcements/438029

In January  half year they had $514m worth of debt including bonds. And look at the pickle they ended up in.

So now they can carry $580m of debt. Excellent!

[Breezy]

Thunderbirds are go.

[Minimoke]

So. To recap,

Shareholding goes from 218.5m shores to 603.3m shares

Bright now holds 65.25% of those shares. A2 retain 19.82% of their holding. Thats 85.07% accounted for. Leaving 14.93% to other minor holders.

After the capital raise available debt goes from $514m to $580m.

Still no one interested in buying Dairyworks

$300m+ worth of Pokeno build essentially being mothballed.

Synlait now no longer the company it was a few months ago. And still a long way from being out of the woods.

[Breezy]

So. To recap,

Shareholding goes from 218.5m shores to 603.3m shares

Bright now holds 65.25% of those shares. A2 retain 19.82% of their holding. Thats 85.07% accounted for. Leaving 14.93% to other minor holders.

After the capital raise available debt goes from $514m to $580m.

Still no one interested in buying Dairyworks

$300m+ worth of Pokeno build essentially being mothballed.

Synlait now no longer the company it was a few months ago. And still a long way from being out of the woods.

In for a good time not a long time, price spike will fizzle out pretty quickly once sugar burst wears off.

[Minimoke]

In for a good time not a long time, price spike will fizzle out pretty quickly once sugar burst wears off.

I've been in and out. Happily took my gains. But see no compelling argument to re-enter.

[Basil]

I've been in and out. Happily took my gains. But see no compelling argument to re-enter.

You took the words right out of my mouth.  I couldn't agree more.  Now the communists are completely in control, the so-called independent director protecting minority shareholders' interests is not only toothless, but he's also literally a puppet on a string.
The NZX not recognizing this as an effective takeover by another means, is a bloody disgrace and makes a complete mockery of the so-called investor protections built into their so-called takeover code.  A truly damming inditement of the lack of efficacy of their regulatory system.

[Breezy]

I've been in and out. Happily took my gains. But see no compelling argument to re-enter.

But that goes for most NZX companies and others on the unlisted market, look at our beloved PAZ as an example, no one wants to buy it yet we believe it has heaps of potential.

[Auto Rower]

But that goes for most NZX companies and others on the unlisted market, look at our beloved PAZ as an example, no one wants to buy it yet we believe it has heaps of potential.

To True Breezy & synlait the Chinese version will be a much different Animal certainly not as pink

[Minimoke]

Its a train wreck.

Revenue up to $1.63b from $1.60
Gross profit actually a loss: $4.1m. Down from an actual gross profit of $90.7 last year.
NPAT loss of $182M. compared with a NPAT loss of $4.3m last year.

Total assets down to $1.494b from $1.685b

Short term debt up to $369m from $243m
Long term debt up to $191m from $178m

Net assets down to $604m from $790m

How is it possible that good will has gone up to $58m from $6m?

"In a scenario where all current (Farmer milk supply) ceases materialise, it is likely that the Group would be required to record a significant impairment against its South Island assets. The viability of the Group's South Island operations would also be threatened". June 2026 a date to put in your diary.

"Poor trading performance or a lack of progress in obtaining removals of farmer supplier cessation notices may preclude a successful future refinance of the Group's banking facilities on acceptable terms. An inability to refinance may result in the Group having to consider securing further debt or equity financing through alternative means or initiating a formal insolvency process. Until such time the Group demonstrates a marked improvement in trading and security over future milk supply, material uncertainty will continue to exist over the Group's ability to remain a going concern"

And lets not loose sight of their closing statement: "If improvements in financial performance and future milk supply are not achieved, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business."