SML - Synlait Milk Ltd

[Xerof]

I will be into this as well, subject to seeing who they appoint to the board to replace the oversupply of Bright directors.

worked with Milne when he was contracted as a 'neutral' CEO during the Richmond takeover stoush with PPCS- all round good guy

Percy, I guess you could say, quite correctly, that RR isn't a Bright director

[percy]

I will be into this as well, subject to seeing who they appoint to the board to replace the oversupply of Bright directors.

worked with Milne when he was contracted as a 'neutral' CEO during the Richmond takeover stoush with PPCS- all round good guy

Percy, I guess you could say, quite correctly, that RR isn't a Bright director

Right on the button.!!!! lol.
Pleasing to know your opinion of Milne.
Sparky.I have been known to change my mind? !

[macduffy]

So to understand this correctly, there are two companies:

Correct.

Refer the earliest posts on this thread.

[Xerof]

Farmerhamilton, not to worry, I looked up the shareholders at companies office. A range of Mid-canterbury and north island farmers...probably a Milne 'cluster'

I did note they have appointed Bill Roest to the board on May 8th

[FarmerHamilton]

Farmerhamilton, not to worry, I looked up the shareholders at companies office. A range of Mid-canterbury and north island farmers...probably a Milne 'cluster'

I did note they have appointed Bill Roest to the board on May 8th

Bright paid $82m for 51% of the equity of Synlait Milk in 2011 ... have they had a 15% annualized return ? Assume they have that would make there equity now worth $108m , Synlait Ltd's stake would be worth $105m. Assume they raise a fresh say $80m ... the value is approaching $300m ....

Anybody know if $300m would get them straight into the NZX50 ?

[stoploss]

Bright paid $82m for 51% of the equity of Synlait Milk in 2011 ... have they had a 15% annualized return ? Assume they have that would make there equity now worth $108m , Synlait Ltd's stake would be worth $105m. Assume they raise a fresh say $80m ... the value is approaching $300m ....

Anybody know if $300m would get them straight into the NZX50 ?

Hi FH , Think there is a methodology ike it has to be 10 % larger for 3 months than the smallest company in the index. You will probably be able to find this on the NZX website somewhere.

[FarmerHamilton]

Hi FH , Think there is a methodology ike it has to be 10 % larger for 3 months than the smallest company in the index. You will probably be able to find this on the NZX website somewhere.

Just had a quick look , doesn't jump out at me but did notice that the free float is quite important ...

Bright
Mitsui
Penno
Dingle
MacLean

Those five shareholder will probably hold around 60-65% of the shares so it will be interesting to see if the get in the NZX50. I guess it also depends on how much fresh capital they are after. Still no word on that , which is a little odd. Maybe they need to wait to see how many existing shareholders in Synlait Limited will want to sell into the IPO ?

[CJ]

Anybody know if $300m would get them straight into the NZX50 ?

This thread is a B!tch to search for but is worth its weight in gold:

http://www.sharetrader.co.nz/showthr...dex+components

In short, $300m would get it in at about place 40 but remember MRP, Meridian and Z are to be added in the same timeframe. From memory, you have to place 45th or above to get in (to stop constant changing at the bottom ranks).

[Newman]

Bright paid $82m for 51% of the equity of Synlait Milk in 2011 ... have they had a 15% annualized return ?

15% annualised return? Bright Dairy would not like be diluted for their share holding if the return is that high. When the controlling shareholder does not want to put more money into Synlait Milk it is a sufficient indication that future is not so bright.

Some expects the same happy story of Fonterra share floating happen to Synlait Milk. But they are different companies, not only in size but also in performance.

[FarmerHamilton]

Today's payout foercast from Fonterra will be being put into the spreadsheets at Synlait IPO HQ as we speak to give implied returns for next season. This obviously is Synlait Milk's biggest COGS and is crucial for the forcasting of future returns. The falling dollar over the last month is obviously great news but a starting price of $7.00 might be a bit of a surprise. This season ( 2012/13 ) payout staying put will be great news for the current year P&L which may well help the shares to IPO at the upper end of the range when it is set.

Waiting for the IM with baited breath ....