Citi are manipulative clowns, why people take notice of them is beyond me.
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Absolutely, Kyvalley purchase in Victoria and moving away from sole reliance on Synlait for IF are all part their business derisk strategy. Imagine if we could have services of Geoff for another 5 years, where will he take this company. I'm sure the new incoming CEO David would be great too.
A2M was struggling to meet demand. This is the next phase of growth :).
21 August 2020NZX/ASX Market Release
The a2 Milk Company enters into exclusive due diligence on Mataura Valley MilkThe a2 Milk Company (a2MC) is pleased to confirm that it is engaged in discussions with Mataura ValleyMilk (MVM), a New Zealand dairy nutrition business, to explore options for a2MC to participate inmanufacturing at MVM’s facility in Southland, New Zealand.As a result of these discussions, a2MC advises that it made a non-binding indicative offer to acquire a75.1% interest in MVM, for a total consideration of approximately NZ$270 million, based on anenterprise value of circa NZ$385 million. MVM has now agreed to provide a2MC a period of exclusivityto conduct confirmatory due diligence and negotiate definitive transaction documentation.
A2 Milk in a 'Very Strong Position.
https://www.bloomberg.com/news/videos/2020-08-19/a2-milk-in-a-very-strong-position-ceo-says-video
A great move for ATM and great for Southland. Clearly they are likely to grow the production even further down there with lots of electricity and labour available post Tiwai closure
I may well be wrong, but I understand that Mataura is currently coal fired/powered (a plentiful cheap resource down that way) however, the Tiwai closure provides and excellent opportunity for them to go clean, green, renewable electricity. I've no idea of the economics, but I like that potential.