There are no reasons to sell profitable businesses unless you have no other options. Pokeno is Synlait's only problem. It's a "black hole" as they described it themselves. This is what they will try to solve and A2M could have been savior here with their new products. But, Synlait and A2M's relationship can be illustrated by the fact that A2M stays away from Synlait with their new product developments and moving from them anything they can (a2 gold, platinum stage 4, Smart Nutrition, etc.). I did not listen but read some comments that George Adams said they are planning more plant based products for Abbott and new products for Bright to be produced at Pokeno. There was no mentioning new products for A2M. But we know a2 is getting ready some. Obviously it will be produced somewhere else. So, It does not look like a warmhearted relationship. One way or another with time A2M will lessen its dependence from Synlait. Will Synlait be ready by then? who knows...
A2M Price at posting:
$6.88 Sentiment: None Disclosure: Held
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