SML - Synlait Milk Ltd

[Balance]

Trading halt pending announcement on financial support from Bright Dairy.

https://www.nzx.com/announcements/428715

Convertible note issue of $150m to Bright Dairy? Say $150m at 5% pa convertible to SML shares at 75c (subject to shareholders' approval) - will deliver control to Bright Dairy in 2027.

Interesting crossing of SML bonds yesterday - 860,000 bonds crossed at 80c (37% yield to maturity) so who was the buyer?

[Bikeguy]

find out next week if sml going into receivership. looks like they ask bright dairy for loan or bank waiver. if neither happen lights out

I just can’t see the Chinese walking away from this, nor A2 being able to let them?

[Bikeguy]

Trading halt pending announcement on financial support from Bright Dairy.

https://www.nzx.com/announcements/428715

Convertible note issue of $150m to Bright Dairy? Say $150m at 5% pa convertible to SML shares at 75c (subject to shareholders' approval) - will deliver control to Bright Dairy in 2027.

Interesting crossing of SML bonds yesterday - 860,000 bonds crossed at 80c (37% yield to maturity) so who was the buyer?

I believe you are right, their strategy on how to benefit from the Covid situation has been actively in play for some time, and the share price dropping due to both the financial impacts along with the “ difficulties “ that have supposedly arisen with A2 has resulted in them being exactly where they want to be,
I’m not happy about it but I cannot help but feel a little bit of respect to them for the successful execution of their strategy.

[bull....]

I just can’t see the Chinese walking away from this, nor A2 being able to let them?

be interesting bright dairy didnt participate in capital raise when they owned 51% of company. now they own 39% so they didnt seem to care then about not retaining 51% ownership

[Bikeguy]

be interesting bright dairy didnt participate in capital raise when they owned 51% of company. now they own 39% so they didnt seem to care then about not retaining 51% ownership

Good point, this one is getting seriously interesting, what was the CR done at back then?

[bull....]

Good point, this one is getting seriously interesting, what was the CR done at back then?

2 odd ? was yr's ago when synliat was on the march higher so was strange they didnt participate

[Bikeguy]

2 odd ? was yr's ago when synliat was on the march higher so was strange they didnt participate

It’s interesting for sure?
If they do play it the way you outlined will be a very smart play on their part,
I would be happy if I was sitting outside this one watching with no skin in the game, but unfortunately very underwater on SML,
Cards will be revealed one way or another now,

[Newman]

[Convertible note issue of $150m to Bright Dairy? Say $150m at 5% pa convertible to SML shares at 75c (subject to shareholders' approval) - will deliver control to Bright Dairy in 2027.

Interesting crossing of SML bonds yesterday - 860,000 bonds crossed at 80c (37% yield to maturity) so who was the buyer?[/QUOTE]

I would expect a demand of 9-10% interest rate if convertible notes issued because Synlait has no options.

[Balance]

[Convertible note issue of $150m to Bright Dairy? Say $150m at 5% pa convertible to SML shares at 75c (subject to shareholders' approval) - will deliver control to Bright Dairy in 2027.

Interesting crossing of SML bonds yesterday - 860,000 bonds crossed at 80c (37% yield to maturity) so who was the buyer?

I would expect a demand of 9-10% interest rate if convertible notes issued because Synlait has no options.[/QUOTE]

The Chinese plays the long game - like they have with the EV market.

[Lego_Man]

[Convertible note issue of $150m to Bright Dairy? Say $150m at 5% pa convertible to SML shares at 75c (subject to shareholders' approval) - will deliver control to Bright Dairy in 2027.

Interesting crossing of SML bonds yesterday - 860,000 bonds crossed at 80c (37% yield to maturity) so who was the buyer?

I would expect a demand of 9-10% interest rate if convertible notes issued because Synlait has no options.[/QUOTE]

Interesting too that they talk about financial assistance from Bright Dairy but not A2, final confirmation that the latter are happy to see them go to the wall.