Shanghai Maling's share price drops
Quote:
Originally Posted by
Sideshow Bob
You would have to presume there is some compensation clause etc within their agreement.
All silent in recent months, but hasn't been an easy season - lamb markets are difficult and the kill gone - but less farmgate competition. Beef probably not really going to hit a peak kill = get farmer prices down and maximum plant efficiencies.
Would think the banks are looking at them more kindly but still with the hammer down. Looking at their cashflow from operations, over $100m out of $152m was from inventory and trade & receivables - so can only do this once.
I examined SFF's latest annual report and its "Notice of meeting and shareholder information pack"(Sept. 2015) and could not find a compensation clause (if Shanghai Maling discontinues investment in SFF) .
A recent article on NBR reported the receivership of Maling's subsidiary company in Czech Republic.
http://www.nbr.co.nz/article/silver-...-next-negative
Maling's share price has dived from around 14 Yuan at the beginning of 2016 to about 9 Yuan today.
http://data.p5w.net/stock/index.php?code=sh600073
Maling recently announced that it has closed two subsidiary companies in China, with big losses.
Although Maling is a big and thus unlikely to change its mind in establishing the joint venture with SFF, nobody from SFF has mentioned the consequence if the joint venture could not be established. Can SFF still survive without the investment from Maling?
SFF was extremely luck in 2008 when Craig Norgate made a mistake to sign an unconditional agreement to buy 50% SFF and could not borrow from banks. It got $10m compensation from PGG Wrightson (?).
Requsition for shareholder meeting
I wonder if the difference in future outlook in supporting information given to farmers before the merger approval meeting and the positive profit announcement after the vote will end up biting the bankers who control SFF in the bum.
http://www.scoop.co.nz/stories/BU160...requsition.htm
Boop boop de do
Marilyn