Without Bright Dairy, Synlait would not be able to renew its license to produce IF for exporting to China, and without the license, A2M would lose a large part of its business.
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WHO is the big sella today OFF aprox 5% atm ? !!!
Overbought and no news .. so was always expected to get a pull back .
Not sure a2 don't have insurance for that with Yashili (Mengniu) and China State Farms/Animal Husbandry. I think SML relied on the Bright effect and it has backfired.
Does A2 needs Synlait's milk to gain access or to sell its products in China?
The SAMR only allows the export to China of the IF produced in the Dunsandel plant of Synlait. In my view, there is no possibility that 1) A2M could continue its business as usual without Synlait; 2) A2M does not participate in capital raising if Synlait decides to go ahead; 3) A2M votes against Bright Dairy’s loan to Synlait; 4) A2M starts dispute with Bright publically as it did with Synlait; 5) A2M deliberately pushes Synlait into receivership then buy the Dunsandel plant at a huge discount because Chinese mums would NOT buy IF produced by a company in receivership and according to Synlait Chairman, Dunsandel is too big for A2M to swallow.
I guess, Bright needs time to get approvals for new spending in New Zealand. Once done, big changes would happen at Synlait at light speed.