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  1. #1
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    Default Synlait to float


  2. #2
    Senior Member kizame's Avatar
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    Smile

    Oooh this sounds interesting,and a niche player.
    We really need the dairy industry in the market.

  3. #3
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    Article says First NZ to float and prospectus out on Monday. Only want cica $150m so doubtful if there will be a public float I guess

  4. #4
    Guru Dr_Who's Avatar
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    Interesting float.

    Will have to do some due diligence on it.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.

  5. #5
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    Now here's an IPO I could be interested in - not a Private Equity cow that's been milked dry.

    (I couldn't believe the numbers of posters who got sucked into the Myers float - hopefully they've learnt their lesson, albeit the hard way.)

  6. #6
    Senior Member kizame's Avatar
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    The interesting thing will be to see how many get sucked into katmandu,even after watching the results of the Myer float.

  7. #7
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    Would have to be a little disspointed with the timing of fonterras announcement. Margins are being squeezed, fonterra downgraded value added returns at both reviews this year. While the milk payout has rise over 30% this year, value added distribution has decreased by 37%.

    If this does go public I think their will be a hell of alot of interest none the less.

  8. #8
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    Quote Originally Posted by Anna Naum View Post

    WELLINGTON (Dow Jones)--New Zealand dairy company Synlait Milk Ltd. said Thursday that
    it plans to proceed with an initial public offering and listing on NZX Ltd. (NZX.NZ).
    Synlait said the offer will be open this month.
    The company didn't give details on the size of the offering, which will be
    lead-managed by merchant bank First NZ Capital Ltd., but highly-placed people at Synlait
    told Dow Jones Newswires this week that the company planned to raise up to NZ$150
    million.
    The company, with headquarters in the small South Island township of Dunsandel and in
    which Japanese company Mitsui & Co. (8031.TO) is the largest shareholder with a 22%
    stake, said the initial offering would be for selected institutional investors in New
    Zealand, Australia and possibly elsewhere.
    The company said it would also take firm offers from NZX firms and there would also be
    an offer to Synlait suppliers and staff.
    The offer is likely to comprise a mix of new ordinary shares and existing ordinary
    shares sold by Synlait.
    The majority of the funds raised would be used to fund a proposed second milk
    processing plant on Synlait Milk's existing site at Dunsandel, the company said.
    Hamilton Hindin Greene broker Grant Williamson said Synlait's IPO "would be a
    welcome addition to the market."
    He said while the country's economy is dependent on the dairy industry, there were
    few opportunities for retail investors to gain exposure to the sector.
    He added that there will be plenty of money available for investments in the sector
    "if the fundamentals stack up."
    The company, founded in 2000, initially raised NZ$105 million to build a dairy
    processing facility which began operations in August 2008 and processes over 100 million
    liters of milk annually.
    Synlait has forward milk supply contracts that will lift supply to 300 million liters
    in 2010 and a second milk drier would almost double the size of the factory and boost
    processing capacity to 550 million liters a year by 2011.
    It produced 30,000 metric tons of dairy products in the year to July 31, 2009 and is
    budgeting for that to grow to 50,000 tons in the July 2010 year.
    After a complete drought of IPOs in New Zealand since December 2007, Synlait will be
    the third this year, following retail chain Kathmandu Ltd. which raised A$340 million in
    a joint New Zealand-Australian IPO and sweetening product company BioVittoria's
    plan, announced Monday, to raise NZ$20 million.
    Dairy dominates the New Zealand economy but there is a lack of sector representation on
    the market after farmer-shareholders of Fonterra Co-Operative Group Ltd., which produces
    a quarter of the country's exports, last year eschewed plans to float up to 35% of
    the company on the NZX.
    Brokers said there will be healthy appetite for a quality offering in the sector. The
    timing might also be propitious, with Fonterra announcing an 18.6% lift in its forecast
    payout to its farmer shareholders Monday following an 88% lift in international milk
    powder prices since July.
    Synlait has previously said it wants to create specific dairy products by manipulating
    the feed of cows. Some herds may be fed grains to boost the benefits of their milk for
    consumers' immune systems, brain health and wound healing. Others may be fed a diet
    that blocked a significant amount of cholesterol-elevating fat from their milk.
    The company has said its links to Mitsui boosts the potential to manufacture such
    specialty dairy products as Mitsui has the expertise to develop them.

  9. #9
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    Interesting to see whether its just the processing business on the block or the farms as well?

  10. #10
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    From the latest press release it seems like the general public won't get a chance to participate if institutions, staff and suppliers get preference

  11. #11
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    In the latest Farmers Weekly, the lead article is on Synlait. It's made a group loss of $42mill in the last year, some due to writedowns, but at least $6.8mill of standard losses there.

    Worse: key lender and shareholder Mitsui of Japan is said to be unimpressed and may want out if the float goes ahead. Mitsui are also due to be repaid a loan to Synlait by Dec 31.

    Synlait has already started selling off some of its farms, to reduce debt and concentrate on building another dairy plant, where it makes more profit..

    Dear John (Penno), I will not be helping out with your problem.
    Last edited by elZorro; 18-11-2009 at 08:00 AM.

  12. #12
    Guru Dr_Who's Avatar
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    Positive news for dairy farmers.

    AUSTRALIAN ministers have called on the US to follow a lead set by the European Union and end subsidies on dairy exports.

    “Given that the US introduced dairy export subsidies in response to the EU introduction of subsidies, the US has no excuse to continue with this program,” Trade Minister Simon Crean and Agriculture Minister Tony Burke said in a joint statement.

    The European Dairy Management Committee last week decided to cut the level of export subsidy refunds on butter and butter oil to zero - the decision applies to all dairy products, they said.

    The EU introduced subsidies in January and this was followed by the US, which introduced a dairy export incentive program in May, which remains in place, they said.

    The EU decision is good news for Australian dairy producers, who supply 10-15 per cent of the global trade in dairy products, and another sign that protectionist measures are being wound back, the ministers said.

    The EU decision comes after a rise in world dairy prices, they said.

    The elimination of export subsidies will be one of the key outcomes from a completed Doha Round of multilateral trade talks, making it impossible for members of the World Trade Organisation like the US and EU to reintroduce such protectionism, which distorts the picture of global trade.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.

  13. #13
    Legend Balance's Avatar
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    Time to buy some cheap dairy farms.

    NZS anyone?

  14. #14
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    Deffering IPO. Due to lack of support, what a suprise I would have thought instos would be queeing up to onsell this one at a ridiculous premium. Plenty of hype but obviously the devil was in the detail.

  15. #15
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    Following a pre-marketing program to brokers and local and international institutional investors, Synlait Milk Limited (Synlait) advises that it has deferred its plans to IPO.

    Synlait received strong support for the IPO from local institutional investors and the Lead Manager but the overall level of support was insufficient to proceed at this time.

    Synlait remains committed to executing its plans and will continue to consider a future IPO and the alternative proposals centered on private capital placements that have been negotiated in parallel.

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