SML - Synlait Milk Ltd

[waterboy]

Has anyone come across a date when we can expect a decision about this weeks court case.
Have a small holding but looking to get out, can't invest in companies that don't keep shareholders informed of all relevant information like appeals on land they are building on. My investments turn into gambling when that happens.
Whole thing is ridiculous, how can someone get a covenant for 200 years (I read that somewhere but cant recall reference) on land in a major growth area when we have housing and industrial land shortages.
How can a covenant over rule planning rules and land use consents.
I think synlait are hoping for a common sense decision but often the law is not about common sense decisions so who knows which way it will go. Why they didn't change the factory configuration to avoid building on the disputed land I can't understand either.

[Beagle]

There will be a decision (on whether a formal appeal is allowed, keep in mind this was just oral submissions on whether a formal appeal is to be alolowable), whenever the judges make up their minds.
Reserved decisions have no specific timeframe.
Even if they allow the appeal, there's still the appeal itself, (which will be many months away from a hearing) and the decision from any allowed formal appeal will no doubt be reserved so there's potentially many more months to wait after that.
Best to decide for yourself if you think management and the board have progressed this Pokeno development in a prudent manner or not consistent with good commerical practice that you would expect of them when investing a quarter of a billion dollars of shareholders money.

[waterboy]

There will be a decision (on whether a formal appeal is allowed, keep in mind this was just oral submissions on whether a formal appeal is to be alolowable), whenever the judges make up their minds.
Reserved decisions have no specific timeframe.
Even if they allow the appeal, there's still the appeal itself, (which will be many months away from a hearing) and the decision from any allowed formal appeal will no doubt be reserved so there's potentially many more months to wait after that.
Best to decide for yourself if you think management and the board have progressed this Pokeno development in a prudent manner or not consistent with good commerical practice that you would expect of them when investing a quarter of a billion dollars of shareholders money.

Thanks for that, it is wait and see for now.
On a more positive note at least the share price has been going up last few days, up again today but flat is aus? Will be able to get out break even if this continues a little further.

[sb9]

Inching slowly close to $10 mark, must've been good outing at court as per lf's comments earlier in the week.

[Leftfield]

Inching slowly close to $10 mark, must've been good outing at court as per lf's comments earlier in the week.

Thanks sb9. Perhaps others have been listening with more open minds than others.

Enough said on this from me. GLH's.

[Ggcc]

http://nzx-prod-s7fsd7f98s.s3-websit...246/310519.pdf

[winner69]

Great news

Synlait announces the conditional purchase of Dairyworks for $112 million, subject to Overseas Investment Office approval. This is reflective of an approximate 7.5 x EBITDA multiple based on the last twelve months earnings.

The acquisition of Dairyworks will provide Synlait with another meaningful move towards the delivery of our Everyday Dairy strategy andcomplements the company’s recent acquisition of cheese manufacturer Talbot Forest.

Synlait CEO Leon Clement commented: “This is an exciting opportunity for Synlait. This business is a great strategic fit for us and an important step in growing our presence in the Everyday Dairy category.”

“Dairyworks is a nimble and innovative company. It will fit well with Synlait and provides us with an opportunity to keep optimising our value chain while giving access into Australia where Dairyworks presence is growing.”

“Opportunities exist in both businesses to streamline supply chains and enhance our competitiveness. It gives us the ability to optimise how we process milk solids and get the most value from our supply of milk. We’re excited by this opportunity as we work to capture more value in the dairy market in New Zealand and globally.”

[Beagle]

How are they going to pay for it given the balance sheet is already stretched ? (No mention of that in the press release...there's your hint right there on what's coming).
Stretch it further, will the banks even allow this with ~ 57% gearing already ? and then what if the custard hits the fan with Pokeno ? What we know with this company its what they don't tell you that should worry you. They don't tell you the settlement date or how they will fund it. Its probably conditional on a large rights issue but with their track record of concealment, such a minor thing, why bother telling shareholders about that till the last minute ?
Large "deeply" discounted rights issue just around the corner...the dog barked it first.
How deep and how much will depend upon how much money they need to fix the Pokeno fiasco.

[RupertBear]

How are they going to pay for it given the balance sheet is already stretched ? (No mention of that in the press release...there's your hint right there on what's coming).
Stretch it further, will the banks even allow this with ~ 57% gearing already ? and then what if the custard hits the fan with Pokeno ? What we know with this company its what they don't tell you that should worry you. They don't tell you the settlement date or how they will fund it. Its probably conditional on a large rights issue but with their track record of concealment, such a minor thing, why bother telling shareholders about that till the last minute ?
Large "deeply" discounted rights issue just around the corner...the dog barked it first.
How deep and how much will depend upon how much money they need to fix the Pokeno fiasco.

Synlait says it has sufficient bank facilities in place to fund the acquisition and, given it is subject to OIO approval, payment is not expected until sometime in the first quarter of 2020. The purchase price represents about 7.5 times earnings before interest, tax, depreciation and amortisation, based on the last twelve-months earnings, it said.

[Beagle]

Where in their NZX announcement do they say that mate ?
http://nzx-prod-s7fsd7f98s.s3-websit...246/310519.pdf