Synlait’s recapitalisation proposal includes a proposed equity raising of approximately NZ$217.8 million by way of a: • $185 million issue of new shares to Bright Dairy Holding Limited at an issue price of $0.60, which will increase its shareholding in Synlait from 39.01% to 65.25%; and • $32.8 million issue of new shares to a2MC at an issue price of $0.43, which will result in a2MC retaining its holding of 19.83%.
Another note, DB sounded disappointed with Synlait on the call with China Label supply constraints. Well this is a big **** you. Export data positive today on the English Label side(Higher margin) into HK.
Looks like Synlait overhang had bit to do with their supply chain issues. DB refused to go into detail around commercial sensitiveness on the call y’day.
That analyst from BoA, another David asked some probing questions as he always does.
Looks like Synlait overhang had bit to do with their supply chain issues. DB refused to go into detail around commercial sensitiveness on the call y’day.
That analyst from BoA, another David asked some probing questions as he always does.
Synlait in its announcement- mentioned the supply chain issue briefly which the two David”s were muscle flexing over . It’s temporary and only until August.
a2 and Abbott will buy Pokeno circa $300-400mm. It makes too much sense, this plant was built for a2's English label ramp up originally, Bodco BC facility(SAMR under Pharmalac) will get acquired too($50-60mm), do a "brand swap" and have a second China label in the market. Auckland facility will produce new EL and have supply from MVM. You have geographic diversification, a plant they know well, and a LARGE multinational(Abbott) who is ramping Soy/Hybrid powders, has recently pulled out of the China IF market and a massive presence in USA infant.
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Originally Posted by sb9
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