Synliat remain very quiet about their new international customer. I suspect things are not going well on that front - otherwise we would have heard something by now.
One look at Synlaits books next week will tell you they are in absolutely zero position to play clever with customers.A2 will be looking very closely and deciding just how much they like, or dislike the inevitable $5m loss or at best $5m profit coming out of that company.
A2 are cashed up and debt free. Synliat have no cash and have a millstone of debt around their neck. At some point their bankers are going to go "enough is enough" and pull the plug. And I can't see A2 having any appetite to participate in any further potential capital raise from Synlait.
I have long held the view Synliat management aren't up to the job. But if they seriously think they can allow A2 to walk away they are bonkers.
A2M Price at posting:
$4.45 Sentiment: Buy Disclosure: Held
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