SML - Synlait Milk Ltd

[CJ]

ill go with hoodwegt - protecting their supplier status ?

How big a percentage would you require to influence that? Dont see that as the reason but will be interesting to see how this plays out.

[FarmerHamilton]

How big a percentage would you require to influence that? Dont see that as the reason but will be interesting to see how this plays out.

Agree with CJ , a 5%-10% holding is not going to allow you to influence the sales of the company.

Strategic investment, glowing endorsement of the company strategy. At $2.20 , they will be very pleased I imagine.

[karen1]

More thoughts on large investor: http://www.stuff.co.nz/business/farm...ional-investor

[Scottman]

I asked my broker through Forsyth Barr if I needed to make a bid price and all he wanted was an amount I was prepared to spend. Still waiting to hear if I got any. Gutted.

[FarmerHamilton]

Strategic investor is Royal Friesland-Campina . BIG Netherlands dairy company ... Fonterra will not be best pleased.

2012 Revs : Euro 10.3 B .... whew !!!

[FarmerHamilton]

from the company website

FrieslandCampina purchases shares in New Zealand milk processor Synlait Milk Ltd.

FrieslandCampina Investments Holding B.V.(1), a subsidiary of Royal FrieslandCampina N.V., has purchased a 7.5 percent interest in Synlait Milk Ltd. The dairy company is located in New Zealand's South Island, near Christchurch. Completion of this transaction is subject to listing of Synlait Milk Ltd on the New Zealand Stock Exchange, which is expected to occur on 23 July 2013 (NZST)(2). With this initial public offering the company wants to raise capital to finance its growth.
Synlait Milk plans to use the capital raised to finance, among other things, a new spray dryer and an on-site blending and consumer packaging plant. By acquiring this interest, FrieslandCampina is supporting the company's growth ambitions.
Roelof Joosten, Chief Operating Officer of FrieslandCampina Ingredients: “In recent years, we have developed a close working relationship with Synlait Milk, a supplier of high-quality raw materials. With this investment, we are supporting our supply of raw materials and also the growth of Synlait Milk.”
Synlait Milk began processing milk in 2008 and currently has the capacity to process 550 million litres of raw milk, which it procures from around 155 dairy farms in the Canterbury region, into approximately 95,000 metric tonnes of products each year. The company focuses exclusively on business customers.

[NZSilver]

http://www.nzherald.co.nz/business/n...ectid=10897010

from the company website

FrieslandCampina purchases shares in New Zealand milk processor Synlait Milk Ltd.

FrieslandCampina Investments Holding B.V.(1), a subsidiary of Royal FrieslandCampina N.V., has purchased a 7.5 percent interest in Synlait Milk Ltd. The dairy company is located in New Zealand's South Island, near Christchurch. Completion of this transaction is subject to listing of Synlait Milk Ltd on the New Zealand Stock Exchange, which is expected to occur on 23 July 2013 (NZST)(2). With this initial public offering the company wants to raise capital to finance its growth.
Synlait Milk plans to use the capital raised to finance, among other things, a new spray dryer and an on-site blending and consumer packaging plant. By acquiring this interest, FrieslandCampina is supporting the company's growth ambitions.
Roelof Joosten, Chief Operating Officer of FrieslandCampina Ingredients: “In recent years, we have developed a close working relationship with Synlait Milk, a supplier of high-quality raw materials. With this investment, we are supporting our supply of raw materials and also the growth of Synlait Milk.”
Synlait Milk began processing milk in 2008 and currently has the capacity to process 550 million litres of raw milk, which it procures from around 155 dairy farms in the Canterbury region, into approximately 95,000 metric tonnes of products each year. The company focuses exclusively on business customers.

[Scottman]

How can a company like that step in during the IPO process & grab those shares. Sorry I'm a novice and may ask a few questions on here.

[NZSilver]

Of interest

Top 20 global dairy companies, 2012

Rank Company Country $ U.S. (Billion) 1 Nestlé Switzerland 25.9 2 Danone France 19.5 3 Lactalis France 18.8 4 Fonterra New Zealand 15.7 5 FrieslandCampina Netherlands 13.4 6 Dairy Farmers of America U.S. 13 7 Dean Foods U.S. 11.7 8 Arla Foods Denmark/Sweden 10.3 9 Kraft Foods U.S. 7.7 10 Meiji Japan 7.4 11 Unilever* Netherland/UK 7.2 12 Saputo Canada 6.9 13 DMK Germany 6.4 14 Sodiaal* France 6.1 15 Yili China 5.8 16 Mengniu China 5.8 17 Bongrain France 5.5 18 Muller* Germany 4.6 19 Schreiber Foods* U.S. 4.5 20 Land O’Lakes U.S. 4.

Read more: http://dairybusiness.com/seo/headlin...#ixzz2Ym9RWYIc

[CJ]

How can a company like that step in during the IPO process & grab those shares. Sorry I'm a novice and may ask a few questions on here.

They would have had a broker bidding in the institutional book build on their behalf. No different than if a fund wanted to take a big bite.