ATM - A2 Milk Corporation Limited

**BlackPeter** · 04-12-2018, 05:09 PM

Originally Posted by 44wishlists

A take over would require Bright Dairy & Food Co., Ltd. approval. And I am very sure the Chinese wouldn't sell their stakes as easy as you may think. Simply their holding in SML isn't just about money, it's a national importance, security of dairy supply to China.

You are right. I didn't intended to suggest that a full takeover of SML by ATM is a serious and likely option. I sort of hoped the wink (

) would give people a hint, but it looks like I failed with this assumption

.

**minimoke** · 05-12-2018, 09:07 AM

Vanguard Group Inc has taken a fancy to ATM. Now holding 5%

**mfd** · 05-12-2018, 09:21 AM

Originally Posted by minimoke

Vanguard Group Inc has taken a fancy to ATM. Now holding 5%

Likely to be almost entirely passive holdings. Just doing what the indices tell them.

**Filthy** · 06-12-2018, 10:52 AM

https://www.stuff.co.nz/business/far...time-last-year

Interesting article on the possible sale of Tip-Top. Wonder if ATM/SML could be possible suitors. or maybe a float? Who knows

**minimoke** · 06-12-2018, 10:57 AM

Originally Posted by Filthy

https://www.stuff.co.nz/business/far...time-last-year

Interesting article on the possible sale of Tip-Top. Wonder if ATM/SML could be possible suitors. or maybe a float? Who knows

I think Westland Co-op would be a better option. Their values align quite well with SML.

From Westlands last Annual Report.

However, as previously discussed, full implementation of the strategy is likely to require significant new capital. The Board is conscious we have relatively high debt levels and limited financial flexibility. It is therefore timely to look ahead and consider the options that can provide a sustained,higher payout and improve the company’s financial flexibility. Obtaining new capital would make a significant difference to the Co-operative.

**hardt** · 06-12-2018, 03:53 PM

Originally Posted by Filthy

https://www.stuff.co.nz/business/far...time-last-year

Interesting article on the possible sale of Tip-Top. Wonder if ATM/SML could be possible suitors. or maybe a float? Who knows

A rich bugger once said Tip-Top lacks a certain Je na sais quoi.

Tip-Top is cheap and the ice-cream sucks... SML aint going near it.

**petty** · 06-12-2018, 04:08 PM

I wondered about the Westland/SML combo recently also. My view is that SML wouldn't go near a Co-op model with a barge pole so would look to acquire Westland outright. I'm no expert in this but I would suppose this sale would then require Westland Co-op member approval to proceed. My guess is this would get messy pretty quickly.

**minimoke** · 06-12-2018, 04:40 PM

Originally Posted by petty

I wondered about the Westland/SML combo recently also. My view is that SML wouldn't go near a Co-op model with a barge pole so would look to acquire Westland outright. I'm no expert in this but I would suppose this sale would then require Westland Co-op member approval to proceed. My guess is this would get messy pretty quickly.

Given SML's approach to farming, this might be a positive alternative to a co-op model. Could be messy. Could be worth it.