A2M the a2 milk company limited

Ann: Synlait Special Shareholders' Meeting update, page-9

  1. 4,862 Posts.
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    My take on that is with the significant financial investments they are making ($300M via loan and capital raise so far) and a larger controlling stake there will be greater expectation on Bright from their higher-ups to turn Synlait around and resolve the issues.

    The situation is geared more towards Bright execs being directly responsible and accountable for results going forward.

    In terms of short term fixes, I'd say the main thing they've done is keep the lights on at Synlait and keep the banks at bay.

    Operationally we don't actually know what the supply issue at Synlait was that affected A2M supply chain. A2M or Synlait is not saying so we don't know and can only speculate. It could be to with particular ingredients in short supply, it could be things in Synalit's control or external factors.

    The sensitivity around the recapitalisation vote and settlement of legal disuptes, and the fact it apparently has already been resolved, is probably why noone is saying anything - probably not worth disrupting the whole relationship over if things are getting back on track longer term. Just my take.
 
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