SML - Synlait Milk Ltd

[Newman]

Unless A2 milk works together with Bright Dairy (and banks ) to take over SML at the expense of other shareholders, it would not get what it wants. Meanwhile, if SML could not sort out its debt and profit issues, the board and CEO have to be replaced.

[BlackPeter]

BP mentioned whether an underwear executive is the best fit for a marketing company (like A2)

Bit like the ex grocer/department store guy trying to run a retirement company (Ryman)

Maybe both not as bad as an accountant doing his best to run another retirement company (Oceania)

OK - fair enough, lets keep the colourful past of the respective actors out of the discussion - and I agree, many accountants have probably a lesser stature than David ;

Having said that - communication is an essential skill in running a company, and while I have to admit that Brent's communication with his shareholders sucks - at least is he not trying to communicate with his major suppliers (and a big investment of his firm as well) using NZX announcements.

So, yes - David might not be the only CEO lacking essential skills, but his lack of crucial communication skills related to major stakeholders certainly still trumps Brents deficiencies in his field.

[Bikeguy]

A2 are not going to burn their only supply channel and Bright dairy, this is simply the ongoing saga of Bright trying to buy Synlait for as little as possible. Bright are pulling the strings here, and A2 are doing as they are told…

[whatsup]

A2 are not going to burn their only supply channel and Bright dairy, this is simply the ongoing saga of Bright trying to buy Synlait for as little as possible. Bright are pulling the strings here, and A2 are doing as they are told…

Bikey, so on that basic do u think that Bright D will buy both ATM and SML ?

[winner69]

No worries

Business as usual. …..finances all sorted for now ….A2 and Synlait still don’t like each other

http://nzx-prod-s7fsd7f98s.s3-websit...412/403201.pdf

[winner69]

Reopen at 120

Not many buyers and sellers but if anybody biggish wants to bail it’ll cost them

[BlackPeter]

No worries

Business as usual. …..finances all sorted for now ….A2 and Synlait still don’t like each other

http://nzx-prod-s7fsd7f98s.s3-websit...412/403201.pdf

Interesting .. so they will enter into "good faith negotiations" re the exclusive supply agreement. No doubt - good faith will sort it.

Bit more worrysome that the banks seem to plan a managed retreat; While they extended the credit facilities for a year, they seem to have as well the desire to reduce (and soon after exit) their exposure:

Working capital facility of $240 million, maturing 1 October 2024, together with a $10 million on-demand bilateral facility. This facility is a seasonal facility where the facility limit changes at several times during the term of the facility.
Revolving credit facilities of $230 million. These facilities also step down over time with maturity dates between 31 July 2024 and 1 October 2025.
Synlait is required to make a prepayment of at least $130 million by no later than 31 March 2024.

Hmm ... but no doubt - there will be a long queue of new moneylenders form in front of their office asking them to take their money instead ;

Any volunteers?

[Bikeguy]

Bikey, so on that basic do u think that Bright D will buy both ATM and SML ?

I have worked in China previously, my thoughts are that Bright will look to lock up the production assets of Synlait. They will do it in a JV with A2 simply because the reality is they would own the whole channel to market anyway.
China likes to own the foreign assets of the products it’s people use, they are very astute and understand the value of dairy as a staple, much like how they purchased the sugar off CSR etc…
It’s not about A2, it’s about securing the ability to feed their people…A2 is nothing to them in the terms of their strategic thinking,

[whatsup]

I have worked in China previously, my thoughts are that Bright will look to lock up the production assets of Synlait. They will do it in a JV with A2 simply because the reality is they would own the whole channel to market anyway.
China likes to own the foreign assets of the products it’s people use, they are very astute and understand the value of dairy as a staple, much like how they purchased the sugar off CSR etc…
It’s not about A2, it’s about securing the ability to feed their people…A2 is nothing to them in the terms of their strategic thinking,

Agree, agree, agree, agree.

[Balance]

Interesting .. so they will enter into "good faith negotiations" re the exclusive supply agreement. No doubt - good faith will sort it.

Bit more worrysome that the banks seem to plan a managed retreat; While they extended the credit facilities for a year, they seem to have as well the desire to reduce (and soon after exit) their exposure:



Hmm ... but no doubt - there will be a long queue of new moneylenders form in front of their office asking them to take their money instead ;

Any volunteers?

Notice the China banks in the syndicate?