Wishing we were shareholders now. AGM will be interesting. Will need to cut short the intro and get on with the weighty stuff.
Cut the intro real short. Could be worth buying just 100 shares to bark up a storm at the AGM but cheaper to watch this comedy of errors unravel from the cheap seats.
I imagine ATM will be really "thrilled" if they have to backtrack on their Pokeno plans.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Going by the sentiment in the case it sounds more the fact that NZIPL more wanted compensation and has dragged every point including the possibility they might want to build a quarry. I think compensation for removal or change of covenants should sort this out, but they will want a huge sum now that they know SML are at their mercy.
Going by Pokeno land prices I'd say the land Sylait bought probably cost them in the region of $15 million as RV value on 45 Mcdonald Road is $13 million and Im sure they paid a premium. https://online.waikatodc.govt.nz/ser...ertyno=2013689
While NZIPL probably paid $20 million since there land is filled with hills and no close by infastructure.
NZIPL probably want $5 million, STL/SML says its too steep, but in the end they will pay. Both parties will be happy and that will be the end of that matter.
Rough drawing using paint haha, not exact accuracy on boundary but at least you can see where the factory has been built and the land where the convenant covers.
Last edited by silverblizzard888; 15-05-2019 at 02:49 PM.
SML have been neck deep in the dodo from day one. They knew of the covenants because they have the compo clause in the purchase agreement. It is disingenuous of them to say in their latest Announcement:
“Synlait only took legal title to the land after the High Court decision removing the land covenants."
They turned soil without legal title in full knowledge of the covenants. Its shareholders who did not know.
Oh I'm not saying SML didn't know and frankly I'm flabbergasted they didn't think to disclose it to the market.
I'm just saying that from a negotiations standpoint with NZIPL it seems like they've stayed out of it and left it to STL to do. And given STL's failure to get an agreement or even to serve all the affected parties it makes me wonder whether STL were really negotiating in good faith or were even necessarily telling SML the truth about what was going on.
Rough drawing using paint haha, not exact accuracy on boundary but at least you can see where the factory has been built and the land where the convenant covers.
Thanks. Lot of car parks (Maybe they aren't but I needed more characters.) !
Solid 2% rise in SML share price today .....getting back to where it was before the latest announcement
Lucky it didn't lose a cent for every post from the non-holders today! I guess the market is a bit more ambivalent about the situation and the risks, might have seen a bargain in the overreaction from yesterday.
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Originally Posted by minimoke
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