Bright is Shanghai municipality, A2M's mates are CCP (state) owned. If I was betting on this, I'd back state over city.
Printable View
Just my opinion but I believe state runs everything in China, Shanghai municipality leaders are not independent of state, they work and answer directly to China ruling party…it probably doesn’t matter which state company you are in business with all roads lead back to Rome so to speak.
Bright is a state-owned company with its head office in Shanghai. It has well-established distribution and retail systems in the Yangtze River Delta, one of China's two wealth centers.
Eventually, Bright and a2M will part ways. After controlling Synlait, Bright will be able to sell a2 IF independently in Shanghai and nearby cities. Bright itself is a well-known brand.
Keep SML and buy A2 I mean…
You’re right- I mistook the letter of support on early April as an underwrite- I stand corrected
Shares at 22 cents now, couldn't resist buying a little today, will continue to buy more if the share price falls as the salvageable value of the assets start looking alright.
Value of their assets
Dairyworks $120m
North Island Assets $340m
South Island assets est $450m or more
Total $910m
At a 70% discount they would still be worth $637m ($637m - net debt $585m =$52m which would be the value they were trading at yesterday), which makes buying at this level quite appealing. Mind you if A2 along with Bright wanted Dunsandel they will be paying 100% worth in a bidding war, so total value in my mind is $772m ($772 - net debt $585m =$187m left over which leaves an upside)