They have a large Chinese shareholder - right ? Does that help with maneuvering through the Chinese regulations BP ?
Disc: Not holding
Printable View
Bright Dairy Group, a China State Owned Enterprise (SOE), through Bright Dairy Holding Limited own 39% of Synlait, by far the largest shareholder. Follow the breadcrumbs to learn how Bright Dairy is connected to the China government.
Incidentally Bright Dairy Group, through one of their subsidiaries Shanghai Maling (Hong Kong) Limited own 50% of Silver Fern Farms Limited.
That's a good question. I suppose the answer would be - it depends.
Sure - on one hand are the financial interests of the city of Shanghai, which would be impacted if Synlait underperforms long term (or crashes) if they would (worse case) lose the Chinese market.
On the other hand would be the lever the CCP currently has to motivate e.g. NZ government to do the "right thing" (whatever this might be in their view - I guess the current tensions between US, Australia and China would provide a rich playing field for games like that).
I would not see 37% of Chinese ownership in this context as "stay out of all political trouble" card, but it probably does not hurt ... though - all sorts of games might be imaginable ....
Actually - I think this is really an interesting game to watch, but I am not sure I want to be involved as a holder just in case the dragon decides it wants to teach the Kiwi to fly ... :scared: :
I think that it is often as well for Chinese people easy to misunderstand the rules ... and I don't think that this would be due to language issues :):
Anyway - hasn't Silverfern as well significant Chinese ownership? I remember that they had over the recent years plenty of issues with exporting their product into China.
I think this clearly shows the priorities of the CCP.
And just to be clear - I don't say that SML will have problems with the re-newal process ... I hope it will all be fine.
I am just saying it is a risk investors need to consider, it is a risk which would be very painful and might be fatal if it does occur, and neither the company nor the investors are able to manage or control it.
One aspect facing NZ meat plants, is that if they have a case of Covid at the plant, then they get deslisted from China, with no apparent roadmap back. For lamb plants especially, when 40-50% of your production goes to China, then its a massive issue. Makes sense to incentivise vaccinations.
Not sure if the same issues for dairy and dairy plants.
Think SFF have found that Chinese ownership has had little/no real advantage when it comes to Chinese listings. Pretty much in the same boat as everyone else.
Would expect that renewal of SML's lisiting should be reasonably straight forward compared to a new listing, and wouldn't expect any issues. Chinese officials can't visit to audit. Although in the fish industry they did some virtual audits and understand delsited some facilities based on these, when they saw people (in level 1) not wearing masks.
The commercial turmoil currently being observed in China can be driven by faction fighting in the Chinese Communist Party. Official harassment is often a tool used to gain advantage in the party over rivals who are the companies principals.
It would be useful to know if the principals of Bright Dairy are members of the Pooh Bear or Toad factions.
Boop boop de do
Marilyn
Market liked the soothing words and started to fall in love with Synlait again
Share price up 8% today
Milk back in favour
Good promotion
"Synlait to sell reusable stainless steel milk bottles through New World in South Island"
https://www.stuff.co.nz/business/far...n-south-island