ATM - A2 Milk Corporation Limited

[see weed]

Feel a bit sad about having to sell.Would like to keep a chunck for long term.I like the milk and would like to get divs one day. Same thing happened to fpa a couple years ago. Feel like deans wants to buy it before they start fully promoting it in the US. Reckon sp will be $2 to $3 one day when all those healthy Yanks start drinking it.

[nextbigthing]

Did you mean to post this in the PEB thread?

If not, did you copy and paste from the PEB thread and change the names?

ha negative, reread. I said 'company that will pay for itself'

[Snoopy]

Feel a bit sad about having to sell.Would like to keep a chunck for long term.I like the milk and would like to get divs one day. Same thing happened to fpa a couple years ago. Feel like deans wants to buy it before they start fully promoting it in the US. Reckon sp will be $2 to $3 one day when all those healthy Yanks start drinking it.

See weed, you don't have to sell. You will only have to sell if 90% of the outstanding shares are accepted into any offer. Since no offer yet exists and no price has been mentioned, it is being far too defeatest of you to suggest that you have to sell.

SNOOPY

[Harrie]

Can't understand the excitement. a2mc said from the very beginning that it was NOT a takeover bid...it was a proposal. What does that mean...only one thing, it will be a placement which will act as a cornerstone investment for Deans. It is of course possible that Deans will eventually move to acquire 100% but I can bet on the fact that they will want to gauge the success in the US market first giving it every possibility to succeed. This is all good news for current shareholders, however as I predict, a2mc with this exposure and interest moves to a different level. The placement will be around the 0.70c mark maybe a little below, but until growth in the target markets is proved the range will sit around the 0.75 to 0.80 mark (add a little speculation premium over the placement price)

[Harrie]

Now 72c on ASX / 81c NZ....

Really. never traded above 0.68c and dropped ever since.

[robbo24]

Can't understand the excitement. a2mc said from the very beginning that it was NOT a takeover bid...it was a proposal. What does that mean...only one thing, it will be a placement which will act as a cornerstone investment for Deans. It is of course possible that Deans will eventually move to acquire 100% but I can bet on the fact that they will want to gauge the success in the US market first giving it every possibility to succeed. This is all good news for current shareholders, however as I predict, a2mc with this exposure and interest moves to a different level. The placement will be around the 0.70c mark maybe a little below, but until growth in the target markets is proved the range will sit around the 0.75 to 0.80 mark (add a little speculation premium over the placement price)

Hear hear.

The question now is: where are the speculative/"momo"/hyped up buyer' stoplosses and how to exploit them when they are hit?

[sb9]

Can't understand the excitement. a2mc said from the very beginning that it was NOT a takeover bid...it was a proposal. What does that mean...only one thing, it will be a placement which will act as a cornerstone investment for Deans. It is of course possible that Deans will eventually move to acquire 100% but I can bet on the fact that they will want to gauge the success in the US market first giving it every possibility to succeed. This is all good news for current shareholders, however as I predict, a2mc with this exposure and interest moves to a different level. The placement will be around the 0.70c mark maybe a little below, but until growth in the target markets is proved the range will sit around the 0.75 to 0.80 mark (add a little speculation premium over the placement price)

Agree. I'll be happy if they made placement with Deans at around 70c and grow from there. At least that way we can all be part of bigger story when it eventuates in times to come.

[twotic]

Really. never traded above 0.68c and dropped ever since.

Re-read the context mate! you've misread it as it stands....

[robbo24]

No its very clearly a full takeover offer. "an expression of interest from two parties with respect to anacquisition of all of the shares in a2MC."
Now whether that actually eventuates is another question.

The full paragraph reads:

As previously announced, The a2 Milk Company Limited ("a2MC") has received an indicative, conditional and non-binding expression of interest from two parties with respect to an acquisition of all of the shares in a2MC.

I think the triple qualification of a mere expression of interest makes it pretty clear that it is not a full takeover offer...

Whether a full takeover offer eventuates is the real question.

[robbo24]

That's just normal legal language for "we are not making a formal offer at this stage because we havent done due diligence or decided a price and you cant sue us if we change our mind". But if it was not a full takeover offer in the pipeline or in the offer, they would not have said ALL shares, as that is now legally binding on them - they can't turn around and do a partial deal as then they will be charged with misleading the market, manipulating the price, etc. But a full takeover offer may not eventuate as they are free to withdraw their expression of interest (which will also require notification to the market). After that, they could put forward a second proposal.

I'm not sure it is "normal legal language", KW...

I don't see how a conditional, non-binding, indicative expression of interest can be a full offer or a partial offer under the Takeovers Code.

And if it was, as you say, an offer under the Takeovers Code, the market manipulation provisions under s 262 of the Financial Markets Conduct Act 2013 arguably would not apply thanks to s 263...

I'm interested to see other examples of conditional, non-binding, indicative expressions of interest of takeovers.

It could just be that A2 Milk had no choice but to announce the conditional, non-binding, indicative expression of interest because it was material even though it isn't even a realistic prospect...

Think about it