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  1. #16421
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    Interesting discussion re why ATM might be looking at buying processing plant.... see here FYI

    "( ATM) will soon be sitting on nearly $1B NZ in COH which would be lucky to be returning much over 1% return for them. If they were successful in acquiring the new shiny state of the art IF plant that is ready to go I am assuming they would be then getting at least another 25% return on their $400M outlay."

    Last edited by Leftfield; 24-06-2020 at 03:40 PM.

  2. #16422
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    Another goodie from that piece:

    The very fact they are going down this path telegraphs to me they believe Synlait will not be able to keep up with the growth they expect and are forecasting to come despite the complications and threats posed by Covid-19.
    "His loyalty couldn't be bought at any price; but it could be rented remarkably cheaply."

  3. #16423
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    Quote Originally Posted by Left field View Post
    Interesting discussion re why ATM might be looking at buying processing plant.... see here FYI

    "( ATM) will soon be sitting on nearly $1B NZ in COH which would be lucky to be returning much over 1% return for them. If they were successful in acquiring the new shiny state of the art IF plant that is ready to go I am assuming they would be then getting at least another 25% return on their $400M outlay."

    GB will make sure shareholders funds are utilised in most prudent way, he's a Master.

  4. #16424
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    Quote Originally Posted by sb9 View Post
    GB will make sure shareholders funds are utilised in most prudent way, he's a Master.
    No debt, and a cash mountain continuing to build - so has to do something with it. Seems sensible to plough some money into a plant, different catchment to Synlait, natural volumes for expansion etc.

    Mataura Valley has been struggling for what you read in the newspaper - supply, price competitive, volumes, efficiencies. A2 would support and change all of that immediately.

  5. #16425
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    Quote Originally Posted by Sideshow Bob View Post
    No debt, and a cash mountain continuing to build - so has to do something with it. Seems sensible to plough some money into a plant, different catchment to Synlait, natural volumes for expansion etc.

    Mataura Valley has been struggling for what you read in the newspaper - supply, price competitive, volumes, efficiencies. A2 would support and change all of that immediately.
    And pick them up for a bargain price in the process...win win for all.

  6. #16426
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    Quote Originally Posted by sb9 View Post
    And pick them up for a bargain price in the process...win win for all.
    I think it might not be a "bargain", but would have to think certainly at the lower end of otherwise might have to pay given situation and global environment. It took them years to get that plant off the ground, resource consents, funding, partners, building etc, so a definite advantage in having something operational, that could start producing relatively quickly.

    The opportune increase of the Synlait holding recently shows they will take their chance when they come up.

    At least wouldn't have to worry about finance!

  7. #16427
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    (probably not the right thread) .... Would Synlait be considering buying Mataura instead of A2?

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    Quote Originally Posted by theace View Post
    (probably not the right thread) .... Would Synlait be considering buying Mataura instead of A2?
    Think they are probably strapped enough for cash and would need their major shareholders to pony up.

  9. #16429
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    Not strictly ATM news, but AFN reports key Aust rival Freedom Foods (FNP.ASX ) is in trading halt with both its CFO and CEO gone.

    Latest woes include write down of $35 mill of outdated UHT stock, while past woes include the historic sale of Freedom's 117 mill ATM shares at prices ranging from 70c to 85c..... had they held onto these shares, they would be worth around $2.1 Billion at todays prices!

    Read it here.

  10. #16430
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    Quote Originally Posted by Left field View Post
    Not strictly ATM news, but AFN reports key Aust rival Freedom Foods (FNP.ASX ) is in trading halt with both its CFO and CEO gone.

    Latest woes include write down of $35 mill of outdated UHT stock, while past woes include the historic sale of Freedom's 117 mill ATM shares at prices ranging from 70c to 85c..... had they held onto these shares, they would be worth around $2.1 Billion at todays prices!

    Read it here.
    Oh dear, what a sorry state of affairs. Hopefully some of their cheap shares went few of us retail folk who would be sitting on a decent kitty.

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