Originally Posted by
jg8512
"340 serves of every minute of every day". That's about 178m serves a year.
At a required return of say 7.5% p.a., you need to earn $28.5m p.a. to cover the cost of your investment ($380m), or only about 16 cents profit per serve. On those modest metrics, Tip Top is a steal IMHO. (All that ignores any growth Tiptop might make)
Fonterra's excessive debt, has lead them to sell a value add business (with growth potential), for a song. Instead, the press release crows that "signedan agreement with the new owners to supply milk … [so] …Fonterra farmers willcontinue to be part of the Tip Top story …” Jesus wept.