SML - Synlait Milk Ltd

[sb9]

They wouldn't be paying that much if they didn't see significant value even at that price, so yes its great news.

Its a cracker of news, they're now second largest holder after Bright Dairy and together both own more than 50% of Synlait. One can draw one's own conclusions as to what the future direction is for both A2 and SML.

[ratkin]

They wouldn't be paying that much if they didn't see significant value even at that price, so yes its great news.

Great news alright, now in A2s interest to make sure Synlait prospers, so no chance they take their orders elsewhere . Either that or they going for a takeover.

[Ggcc]

Great news alright, now in A2s interest to make sure Synlait prospers, so no chance they take their orders elsewhere . Either that or they going for a takeover.

17.39% owned by A2...... They must have been buying on market as well leading up to the announcement. Unless I have missed something

[Nasi Goreng]

Great news alright, now in A2s interest to make sure Synlait prospers, so no chance they take their orders elsewhere . Either that or they going for a takeover.

I think this goes both ways and solidifies the partnership. There could be a risk of A2 choosing another dairy factory to produce infant formula. Similarly, an equal risk of SML taking all that a2 milk and producing a2 milk formula for a competitor down the track.

Will there be a merger of sorts or buy out from a2 in a few years? I would say right now that a2 can't afford to splash out $1B+ for a dairy company without hurting their cash position so it makes sense that they have no further plans at this stage to acquire any more.

[winner69]

17.39% owned by A2...... They must have been buying on market as well leading up to the announcement. Unless I have missed something

Already had heaps from last year

Then bought 1.7m shares in April on market

And the Mitsui ones today

[Ggcc]

Already had heaps from last year

Then bought 1.7m shares in April on market

And the Mitsui ones today

Thanks that’s appreciated

[Beagle]

Already had heaps from last year

Then bought 1.7m shares in April on market

And the Mitsui ones today

http://nzx-prod-s7fsd7f98s.s3-websit...685/283836.pdf
Contract contains interesting price escalation clause. I think we can take ATM's last sentence, that they're not interested in acquiring more, with a grain of salt.

[peat]

http://nzx-prod-s7fsd7f98s.s3-websit...685/283836.pdf
Contract contains interesting price escalation clause. I think we can take ATM's last sentence, that they're not interested in acquiring more, with a grain of salt.

sure, they’re not going to announce it but that escalation clause means that if they do - before March 2019, and the price is higher then they’ll have to pay more to Mitsubishi?

[minimoke]

Contract contains interesting price escalation clause. I think we can take ATM's last sentence, that they're not interested in acquiring more, with a grain of salt.

That last sentence can probably read " A2MC has not further plans to further increase its shareholding in SML until after March 2019 after which time we should have a bit more loot in our coffers to pay for it".

[Beagle]

That last sentence can probably read " A2MC has not further plans to further increase its shareholding in SML until after March 2019 after which time we should have a bit more loot in our coffers to pay for it".

Someone hand that man a beer.