SML - Synlait Milk Ltd

[Rawz]

Was trying to think why Bright would participate or lead a cap raise? Or why advance the $150m? They would only be helping the bond holders and other small shareholders. Like just let SML go into liquidation and buy the assets in the coming fire sale.

Bright has already invested $82m into SML. Only to see it essentially fail. Why put another dime in?

[Rawz]

As the major shareholder, Bright, has completely stuffed this up. What started as (i assume) the Chinese looking to secure supply has turned into a financial disaster that they will have to start all over to secure that same supply.

All good 440 SML employees creamed it earning $100k+ pa. Suppose thats not that much these days. 47 get paid over $200k pa.

[Bikeguy]

Was trying to think why Bright would participate or lead a cap raise? Or why advance the $150m? They would only be helping the bond holders and other small shareholders. Like just let SML go into liquidation and buy the assets in the coming fire sale.

Bright has already invested $82m into SML. Only to see it essentially fail. Why put another dime in?

Foreign ownership laws would prevent them doing that…
They have done exactly what they wanted to do, the SP is cheap as chips, everyone else is going to be to scared to participate, A2 are going to be forced to participate to protect their 20%, and Bright are going to come out of this owning it for a fraction of what it would and should of cost…

[ralph]

Was trying to think why Bright would participate or lead a cap raise? Or why advance the $150m? They would only be helping the bond holders and other small shareholders. Like just let SML go into liquidation and buy the assets in the coming fire sale.

Bright has already invested $82m into SML. Only to see it essentially fail. Why put another dime in?

They obviously need that milk in china & will keep the source One way or another,
It's a resource china need /want with or without the woke pink brigade wasters, dunsandel will keep churning out the products needed, possibly change of name less woke more profit driven .
Plenty of puff left in this butt

[Bikeguy]

A2 must be fuming, they are going to be forced to pay to protect their position or lose their blocking stake in their only “current “ viable production facility

[Rawz]

Foreign ownership laws would prevent them doing that…
They have done exactly what they wanted to do, the SP is cheap as chips, everyone else is going to be to scared to participate, A2 are going to be forced to participate to protect their 20%, and Bright are going to come out of this owning it for a fraction of what it would and should of cost…

Yes Bright have SML exactly where it wants it. Unprofitable. Debt laden. Burning cash. Too much supply not enough customers.

You are giving them too much credit.

Bright are in a very difficult position now having to throw in even more money. They will be counting their lucky stars they let their original 51% ownership be diluted to 39% when SML listed.

Why would A2 participate? A2 don't need to protect anything. Synlait have too much capacity and talk of a big new customer has turned out to be dreamland stuff. Synlait or any new owner of Synlait assets would be begging for A2s custom.

[Leemsip]

This turd is holding up pretty good which is surprising. I would expect to see 50c soon.... cap raise will be challenging to get away without a decent discount.

[Bikeguy]

Yes Bright have SML exactly where it wants it. Unprofitable. Debt laden. Burning cash. Too much supply not enough customers.

You are giving them too much credit.

Bright are in a very difficult position now having to throw in even more money. They will be counting their lucky stars they let their original 51% ownership be diluted to 39% when SML listed.

Why would A2 participate? A2 don't need to protect anything. Synlait have too much capacity and talk of a big new customer has turned out to be dreamland stuff. Synlait or any new owner of Synlait assets would be begging for A2s custom.

I may be giving them to much credit, and I certainly do not think that they have been able to create the circumstances of which have been part of this, Covid etc, however yes I do think they have used the circumstances to their best outcome…the fact that Bright are taking the position they have in today’s announcement shows their intent?
We are talking about a country that pretty much took a 900 billion hit (evergreen) and it’s not even really mentioned globally…
A few hundred million to these guys is nothing in their quest for food security,
Just my thoughts though…

[Newman]

[QUOTE=Bikeguy;1046957]Foreign ownership laws would prevent them doing that…QUOTE]

Could you explain a little bit more?

[Mel]

I may be giving them to much credit, and I certainly do not think that they have been able to create the circumstances of which have been part of this, Covid etc, however yes I do think they have used the circumstances to their best outcome…the fact that Bright are taking the position they have in today’s announcement shows their intent?
We are talking about a country that pretty much took a 900 billion hit (evergreen) and it’s not even really mentioned globally…
A few hundred million to these guys is nothing in their quest for food security,
Just my thoughts though…

I agree, food security is a key element in the equation, and this is much bigger than just Bright as a corporate entity.