ATM - A2 Milk Corporation Limited

[nextbigthing]

I see the ATM thread is now the new PEB thread. "Cool"

[NT001]

Remember they (Freedom) already own 20%, and the Periches another 20%

Silver, I've just been checking on this and I think you may have been misled by a mistake-ridden article in today’s ODT which quoted a ForBar source as referring to “Freedom's 18% stake in ATM, and further 19% in conjunction with Arrovest”. This is wrong.

In fact Arrovest, the Perich family’s company, filed an SSH with NZX on 9 June stating that for the purposes of Section 276 of the Financial Markets Conduct Act 2013, it had become a substantial shareholder in ATM by acquiring 8,698,655 shares, a mere 1.318% of ATM’s total shares.

This is because Arrovest owns more than 20% of Freedom Foods, which means it has a “relevant interest” in both its own stake and Freedom’s 117,699,229 shares (17.831%) – in other words a total of 126,397,884 ATM shares (19.149%).

The SSH notice is written in total gobbledygook (thanks to NZX) in order to make it very hard even for a ForBar analyst to understand, let alone the public, but that seems to be the guts of it.

In short, Freedom and Arrovest own 19.148% of ATM between them. Arrovest is not a party to the takeover proposal, but you can be sure it was behind it. The Periches seem very keen on A2.

Today’s ODT story also said erroneously that the rise in value of ATM’s shares from 57c on Monday to 70c on Wednesday raised ATM’s market cap from about $37.5 million to about $50m. Well both those figures were in fact 900% wrong – they were only 10% of the true market cap. Cheers NT

[see weed]

If this company gets sold, I'm thinking of buying my very own a2 cow to put in the back yard. Then I can drink whenever and not have to drive to Countdown. Might have some left over for $2.30c a litre. Yes, a drive through cow shed. How many litres from the udder do you think would come out of a cow? Anybody know? .

[stoploss]

If this company gets sold, I'm thinking of buying my very own a2 cow to put in the back yard. Then I can drink whenever and not have to drive to Countdown. Might have some left over for $2.30c a litre. Yes, a drive through cow shed. How many litres from the udder do you think would come out of a cow? Anybody know? .

Depending on the season , feed etc , 13/14 L a day

[see weed]

Depending on the season , feed etc , 13/14 L a day

Is that all. Would have to have 100 cows to make it worth while. Nah, think will stick to Countdown.

[baller18]

Thanks NT001, so how in the hell does freedom foods have the ability to buy out ATM??!!

[NT001]

Thanks NT001, so how in the hell does freedom foods have the ability to buy out ATM??!!

Well I don't really think FF does have the ability or the need/wish/reason to buy out ATM, although it does already have almost 20%. It could probably manage to push this up to 51%, especially with help from Deans. But according to research by some others on this thread, Deans doesn't have a lot of dosh either. The Perich family on the other hand are absolutely loaded. I'm inclined to think we might end up seeing a 51% takeover bid. Much more doable and far far cheaper, even though I can't see 31% of shareholders selling for less than about 95c, given that the SP was higher than that not long ago.

[QFD Sage]

What we need is as follows:
- The company to provide an update on the markets (particularly US launch) so that shareholders can make an informed decision on the current speculation.
- Fonterra to start buying a blocking position (at least 10%). I think that they must be interested from their "no comment" stance. If they were genuinely not interested they would have said that?
- current indicative interest to be sorted promptly one way or the other. If it is a partial takeover (my guess, and maybe for less than $1), then get on with making the bid!

[NZSilver]

Thanks NT - yeh I noticed that on the MCaps - horribly wrong. OFD - your onto it, but im not sure fonterra is interested, they never have been in the past. Maybe another dairy company, or maybe no one else really cares about A2

[Longhaul]

Not sure if anyone has posted this, but Google Trends can show interest in A2 Milk (or anything else for that matter).

http://www.google.co.nz/trends/explore#q=a2%20milk