SML - Synlait

[Minimoke]

Well yes by market cap but would someone be able to buy the whole outfit for under 100 mill, not very likely.

Very hard to value.

But (as rumoured) SML is losing farmer supply raw material the stainless steel may only be worth scrap metal value.

Now, obviously that's an extreme.

But clearly as each day goes by, it is becoming worth less and less.

(Note - another week gone by and still no buyer of Dairyworks. Which is arguably the first and easiest cab of the rank)

[Basil]

This whole fiasco is starting to look like an orchestrated litany of lies.
I find it hard to believe a half reasonable offer for Dairyworks has not already been tabled...it's just that certain shareholders want the company to end up in deep doggy doo which suits their end game.  The bonds are arguably, worthless. 

P.S. Closing share price only 44 cents !

[Teitei]

https://www.ruralnewsgroup.co.nz/dai...t/takeover-bid

Takeover bid?
Written by Milking It

OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.

The listed company's share price has dropped to 50c/share, valuing the company at only around $100 million. The share price has been travelling south despite the company working hard to sell off under-utilised assets and reduce debt.

Milking It reckons all this means a takeover bid could be around the corner. Watch out for Bright Dairy of China; it already owns 39% of Synlait and could easily fork out a couple hundred million to buy the company outright.

The Chinese know how to run successful dairy companies in NZ; just look at Westland Milk, which reported a record revenue of over $1b last financial year.

[Minimoke]

https://www.ruralnewsgroup.co.nz/dai...t/takeover-bid

Takeover bid?
Written by Milking It

OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.

The listed company's share price has dropped to 50c/share, valuing the company at only around $100 million. The share price has been travelling south despite the company working hard to sell off under-utilised assets and reduce debt.

Milking It reckons all this means a takeover bid could be around the corner. Watch out for Bright Dairy of China; it already owns 39% of Synlait and could easily fork out a couple hundred million to buy the company outright.

The Chinese know how to run successful dairy companies in NZ; just look at Westland Milk, which reported a record revenue of over $1b last financial year.

Is this an item from Sharsies?

If the measure of how to run a successful dairy company is the amount of revenue (in this case "over $1b") then we need to point the author to synlaits half year results which shows a revenue of $652m. Lets call it $1.3b annualised

[Teitei]

Is this an item from Sharsies?

If the measure of how to run a successful dairy company is the amount of revenue (in this case "over $1b") then we need to point the author to synlaits half year results which shows a revenue of $652m. Lets call it $1.3b annualised

Clink on the link if you want to know where the article is sourced from.

As for Westland Milk, most of us can remember wondering (and then, laughing) at the Chinese company Yili paying $3.41 per share (vs independent valuation of $0.88 to $1.38) for the loss making company and taking over Westland's heavy debt burden of $342m.

Well, turned out Yili knew exactly what they were doing - turnover has increased by 52% to $1.065b from the $698m in 2019 when Yili took over the company. More importantly, Yili has turned Westland losses to profits - $38.9m in 2022 and $55.9m in 2023.

So a Chinese company with unequalled access to overseas markets (especially China) and deep pockets bought a NZ dairy company which was in financial distress and under its management and ownership, turned it into a highly profitable growth dairy company.

Sounds familiar?

[Minimoke]

Clink on the link if you want to know where the article is sourced from.

As for Westland Milk, most of us can remember wondering (and then, laughing) at the Chinese company Yili paying $3.41 per share (vs independent valuation of $0.88 to $1.38) for the loss making company and taking over Westland's heavy debt burden of $342m.

Well, turned out Yili knew exactly what they were doing - turnover has increased by 52% to $1.065b from the $698m in 2019 when Yili took over the company. More importantly, Yili has turned Westland losses to profits - $38.9m in 2022 and $55.9m in 2023.

So a Chinese company with unequalled access to overseas markets (especially China) and deep pockets bought a NZ dairy company which was in financial distress and under its management and ownership, turned it into a highly profitable growth dairy company.

Sounds familiar?

I agree. They paid a staggering premium and turned it around. The article would have made more sense if it said "The Chinese know how to run successful dairy companies in NZ; just look at Westland Milk, which reported a profits after suffering serious losses under their prior co-op model"

[Teitei]

I agree. They paid a staggering premium and turned it around. The article would have made more sense if it said "The Chinese know how to run successful dairy companies in NZ; just look at Westland Milk, which reported a profits after suffering serious losses under their prior co-op model"

Do some research - it's a useful thing before one writes.

[Minimoke]

Do some research - it's a useful thing before one writes.

A somewhat snarky response to my post that was essentially agreeing with yours.  What have I written about Synlait do you dispute?

[Teitei]

A somewhat snarky response to my post that was essentially agreeing with yours.  What have I written about Synlait do you dispute?

Fair enough.  I should have made it clearer that I was responding to your comments to my post #812.

Is this an item from Sharsies?

If the measure of how to run a successful dairy company is the amount of revenue (in this case "over $1b") then we need to point the author to synlaits half year results which shows a revenue of $652m. Lets call it $1.3b annualised

Firstly, it was clear you did not bother to clink on the link to ascertain that it is from RuralNewsGroup. Making reference to Sharesies is intended as an insult by you so don't try that snarky BS on me.  I know of the low opinion Sharesies is held by certain individuals and I have never dealt through Sharesies or read any of their articles (assuming they offer such a service).

Secondly, you could not wait to insinuate that the author of the article did not know what they were writing about re your reference to 'revenue'.  Best you do a bit of research, no? And you would understand that the author do know what they were writing about.

Anyway, interesting times ahead.

[Teitei]

deleted ... double entry

[Minimoke]

Links have limited value.

You cannot view this attachment.

[Teitei]

Worked before so here's the link again :

https://www.ruralnewsgroup.co.nz/dairy-news/dairy-opinion/milking-it/takeover-bid

[Minimoke]

Worked before so here's the link again :

https://www.ruralnewsgroup.co.nz/dairy-news/dairy-opinion/milking-it/takeover-bid

It says nothing that hasn't already been expressed many times on this thread already.

[Teitei]

It says nothing that hasn't already been expressed many times on this thread already.

Difference is that the opinion is expressed in a publication which reaches a big dairy & agricultural audience.   

[Minimoke]

I am still trying to get my head around Fonterra's announcement to sell its consume brands and just go forward as an ingredients business.

I suppose this tellms me there isn't much money  on retail product /brands

Which leaves me wondering where does this leave Dairyworks?

Perhaps it explains Synlaits inability to flog this off.