Synlait Farms Limited (SNLF)

[000831]

Synlait Milk to list on NZX probably by August .... Bright to get diluted back under 50% ... all very interesting !!

That's milk factory part, not farm.

[FarmerHamilton]

Yes ... but the shareholders are virtually identical save Mitsui & Bright in the two companies so it is very relevant. Post IPO there could be alot of switching from current holders between the two ... more "old school" farmers may exit processing and re-invest in cows & land , others may view the processing as the one they want exposure to. Prior to this you had to have exposure to both.

[000831]

If Synlait Milk gets more bright prospectives, why farmers sell them?
I only see GDT Milk price down, OCR will lift up by the end of year. Not good for the farmers.

What's the real reason Synlait did seperate the firm into two parts? To protect the land to be controlled by the Chinese firm, debt heavily on Synlait farm, or EPS too low bad for NZX list as a whole?

If the farm part has potential, then the group should not seperate them at the beginnings. But they did. Why Why Why?

[FarmerHamilton]

If Synlait Milk gets more bright prospectives, why farmers sell them?
I only see GDT Milk price down, OCR will lift up by the end of year. Not good for the farmers.

What's the real reason Synlait did seperate the firm into two parts? To protect the land to be controlled by the Chinese firm, debt heavily on Synlait farm, or EPS too low bad for NZX list as a whole?

If the farm part has potential, then the group should not seperate them at the beginnings. But they did. Why Why Why?

"I only see GDT milk price down" .... don't invest then ! Simple

[FarmerHamilton]

"I only see GDT milk price down" .... don't invest then ! Simple

Trading in Synlait Farms is quiet this week , the announcement of a Synlait Milk float will hog the limelight over the next few months, trading in Farms may well be non-existent while people wait to see the IPO prospectus and weigh up the best way to gain exposure to the dairy supply chain. Raw milk or end products ?? Land or stainless steel ??

[FarmerHamilton]

Fonterra forecast $7.00 payout for 13/14 season. SNLF P/E ratio on a payout at that level about 6

[Newman]

Synlait Milk is currently 51%/49% owned by Bright Dairy and Synlait Limited. All Shareholders in Synlait Farms own all the shares in Synlait Limited apart from Mitsui & Co who cashed out of Synlait Farms recently in the move to the Unlisted but maintained their Synlait Limited shareholding.

It sounds like Synlait Limited will distribute all its Synlait Milk shares to its shareholders so all holders will then have shares in SNLF on the Unlisted exchange and SML shares on the NZX. A far better scenario than a few short weeks ago.

It is very interesting that you seems an expert on Synlait business but you got the basic fact wrong! If you buy Synlait Farms shares on Unlisted market you would not get any share in Synlait Milk. Synlait Farms and Synlait Limited have different sets of shareholders although some people have shares in both companies.

[FarmerHamilton]

It is very interesting that you seems an expert on Synlait business but you got the basic fact wrong! If you buy Synlait Farms shares on Unlisted market you would not get any share in Synlait Milk. Synlait Farms and Synlait Limited have different sets of shareholders although some people have shares in both companies.

Newman , the day before Synlait Farms listed on the Unlisted the company was one company Synlait Limted ... shareholders in SL were given shares in Synlait Farms and kept there shares in Synlait Limited ( who's only asset was a 49% stake in Synlait Milk) So apart from Mitsui ALL shareholders in Synlait Farms also owned shares in Synlait Limited which on the IPO of Synlait Milk will then own Synlait Milk shares via a distribution from Synlait Limited and Synlait Limited will no longer effectvely exist.

The new buyers of SNLF since the Unlisted listing will not be shareholders in Synlait Milk as of right , yes you are correct. But EVERY single other Synlait Farms shareholder will be receiving Synlait Milk shares in the IPO in exchange for their Synlait Limited shares so the shareholder base of Synlait Farms and Synlait Milk today is virtually identical save Mitsui and Bright ( who both own no SNLF shares , and Bright never have )

Hope that helps ... $7.00 is just the start !!

[FarmerHamilton]

No trade for over one month now . Disappointing given the Fonterra forecast of $7/kgMS for the 13/14 season and the fact that the NZ$ has dropped about 5% since early May.

[FarmerHamilton]

Should have double checked ... 100,000 just traded

65,000 at 98c
35,000 at $1.00 ... no offer currently