ATM - A2 Milk Corporation Limited

[RGR367]

..................
Imagine 5 years from now increased demand for A2 and NZ not even being in the game.

Do you think that those who buys at the Fonterra auction for dry milk powder really care about whether its a combination of A1 and A2 protein? I don't think so. It may diminish somewhat Fonterra's clout but there will always be a market for milk as it is now.

[Leftfield]

Do you think that those who buys at the Fonterra auction for dry milk powder really care about whether its a combination of A1 and A2 protein? I don't think so. It may diminish somewhat Fonterra's clout but there will always be a market for milk as it is now.

Maybe not now…. but in the future? The A1 v A2 debate is a bit like Tobacco Inc's denial of problems for many years. Deans & Freedom are smart cookies. Shame for NZ to lose this one as our dairy industry needs to hedge its bets, rather than drowning in denial.

[Harrie]

There is some interesting comments made in the article above posted by Kirk

The first is that the Perich family, indicated itwas concerned about a2’s expansion strategy.
Why is that? They could not have been concerned with stumping up with cash in a CR because the article did say that FF had $100 mil in cash to use for a buyout of a2mc?

Deans has just secured a $1 bil lending facility. The CEO says that they are deleveraging and apparently they have enough cash to cover secured debt which has probably come from the securitization of their receivables, so now they are wanting to leverage up again to buy out a2mc?
In a way they are like Fonterra. The are heading in the right direction with marketing nutritional product to compete with the dairy alternative beverage market but with a2 how is that going to sit with their "Dairy pure product" which contains the A1 protein?
Will be an interesting marketing exercise.

[NT001]

Yes, Fonterra and its mates in the Food Safety Authority (a government agency) dug themselves into a hole several years ago by rubbishing A2's claims, and will be somewhat nervous about its recent success commercially and scientifically, but it's hard to see how they can dig themselves out.

They must be a bit blindsided by a2MC's recent offshore success. Their hope obviously was that the company would fail to take off from its pathetic NZ base, and would never get much scientific credibiity. Wrong on both counts. My suspicion is that Fonterra would now like to reach a compromise with a2MC and take over Fresha's licence to produce A2 milk for the NZ market. Its farmers must be looking with envy at the premiums being earned for A2 milk. But Fonterra and the FSA would both have to eat a lot of their past words and Synlait would almost certainly raise objections. I don't see why a2MC would agree either, now that it's on the verge of major offshore expansion despite all the past knocking.

[Harrie]

Well said snapiti, I'm a great advocate of seeing arrogance eat humble pie, still, I suspect that until its blindingly obvious that A1 protein has known health issues, they will continue to deny it.

Just thinking that Deans may be interested in using FF networks in China to distribute USA product. A FF, new hope, JD com, Deans partnership holding all the shares in a2mc would certainly help them given that Deans product could be channelled through Australia under the FTA

[NT001]

highly unlikely to see 4 different partners take control of the company....too many chiefs and working parts to make that work for all of them.

Totally agree.

[Harrie]

yeah probably right, but maybe a FF Deans combo

[sb9]

Yeah, two is company (partnership), three is crowd and four is disastrous....

[ziggy415]

yeah probably right, but maybe a FF Deans combo

i still think freedom,s block of shares are on the market....I think they want out

[QFD Sage]

I actually think that it will be a 4 party consortia, each party taking responsibility for their own territory/market. Freedom in Aus, Dean in U.S., JD in China, and who in the UK....Wiseman maybe? That makes the transaction affordable too. Roll on an announcement...if no bid is forthcoming I would like ATM to focus on the business and get the Cap Raise underway if that will accelerate the strategy.