ATM - A2 Milk Corporation Limited

[dobby41]

smart move, good to see.

Is it?
Given the legal issue they still have why buy in when they don't need a physical producer - just good contracts to a producer.
I suspect there is more to it - maybe trying to have a better blocking holding (blocking from takeover).
I feel this is strategic rather than economic.

[tomm]

Which Birds were trying to make fun of me when I said Auckland is going to lock down ???

[Mr Slothbear]

Is it?
Given the legal issue they still have why buy in when they don't need a physical producer - just good contracts to a producer.
I suspect there is more to it - maybe trying to have a better blocking holding (blocking from takeover).
I feel this is strategic rather than economic.

gives them more power to throw their weight around. I’m sure A2 aren’t happy about some of the management decisions made by Synlait. Probably try to get someone from A2 on SML board and start aiming to give A few in managament a taste of what happened to Jayne.

You say all they need is a contract with a producer but they must be SAMR certified and thats worth hundreds of millions to A2.

[Leftfield]

I feel this is strategic rather than economic.

It's a great move IMHO. Taking advantage of current bargain share prices to lock in long term supply, product development and important chinese market approvals.. It provides strategic and economic benefits.

Just the good news I needed on an otherwise depressing Covid-19 day!!

[JeremyALD]

Will a2 have any challenges with distribution in current state, especially with the lockdown? Or are they considered an essential service?

[ratkin]

Will a2 have any challenges with distribution in current state, especially with the lockdown? Or are they considered an essential service?

Because they supply supermarkets they maybe ok

Here is the list
https://covid19.govt.nz/assets/essen...vices-list.pdf

[JeremyALD]

Because they supply supermarkets they maybe ok

Here is the list
https://covid19.govt.nz/assets/essen...vices-list.pdf

Thanks very much

[Beagle]

They stopped just short of the 20% mark with Synlait which for anyone who doesn't know is the threshold above which they must make a full takeover.
My sense is they will wait for a negative outcome from Synlait's court case and the consequent share price reaction and at some point not too long after that launch a full takeover offer.
Geoff Babbage is a master. If Jayne was still in change the shares would be in the toilet like almost everything else.

[Sideshow Bob]

Will a2 have any challenges with distribution in current state, especially with the lockdown? Or are they considered an essential service?

They'll still be working. No airfreight. Seafreight only and that could be a little hit & miss but likely OK - but all dry containers and not reefers - which would make it a lot easier.

[Leftfield]

If Jayne was still in change the shares would be in the toilet like almost everything else.

Methinks you need to move on Beagle. Jayne is history now, and can hardly be blamed for 'everything else'.