SML - Synlait Milk Ltd

[Nor]

I was at the AGM in 2016 or was it 2015 and a representative of the shareholders association who was there commented to me on their high debt even then. It must have been terribly managed for things to have only got worse in the 7 or 8 years available to them since.

[Toddy]

I guess that Fonterra is playing the long game, patience should be rewarded as IMHO its the only game in town apart for a massively delutary cash issue.
Unless the current SML share holders step up and take a massive hit on the chin which imo still does not solve their situation due to a massive debt pile which they have just added to.
Fonterra has cash and imo its in their interest to see SML fail !!, so sad really sad for N Z inc !!

It's not sad to see Fonterra do well. And Fonterra is our largest NZ Inc Brand.
The Synlait assets aren't going anywhere. They will just be owned by someone else. Someone who can run them better and have the backing of the farmer suppliers.

I'm having flashbacks of Fortex and the poor farmers trying to get their stock out of the yards, past the security guards who were their drinking buddies.

[silverblizzard888]

I was at the AGM in 2016 or was it 2015 and a representative of the shareholders association who was there commented to me on their high debt even then. It must have been terribly managed for things to have only got worse in the 7 or 8 years available to them since.

Its been managed with people with pink hammers looking for pink nails to hammer.

[winner69]

I was at the AGM in 2016 or was it 2015 and a representative of the shareholders association who was there commented to me on their high debt even then. It must have been terribly managed for things to have only got worse in the 7 or 8 years available to them since.

Was that the ASM where shareholders gave the Board and management a standing ovation for doing a brilliant job

[Sideshow Bob]

I was at the AGM in 2016 or was it 2015 and a representative of the shareholders association who was there commented to me on their high debt even then. It must have been terribly managed for things to have only got worse in the 7 or 8 years available to them since.

It has been a very slow moving train wreck, with a litany of disasters, poor acquisitions and poorer decision making.

[Nor]

Don't remember. Mainly remember being disappointed by the tour of the factory which consisted of walking along a passageway and peering through a few windows.

[whatsup]

Isnt there an issue of the ownership of the ground that SML occupies or has that been sorted?

[Rawz]

wonder what Balance's views are now on the bonds?

[Goob]

What earnings multiple would you pay for a dairy processing company?

Reason I ask is that I'm wondering why Synlait haven't sold for $120m (wrote down net assets to that to reflect offers; see comment below). That's good IMO. Did ~$10m NPAT last full year and just did another $5m. I wouldn't pay more than 12x earnings for a capital intense dairy processor, which as an industry probably have dreadful base-rate shareholder returns. I say sell it.

"There was a $31.1 million adjustment recorded to write down the net assets of Dairyworks to fair value less costs of disposal to reflect the value of non-binding offers received."

[Grimy]

wonder what Balance's views are now on the bonds?

43.5% ask and no bidders........