I've had a bit more time this morning to go through the report and I'm at a loss why Wilmar is interested in taking over the whole company.
I can see them being interested in the dairy division, as I think they will ramp it up to do a proper job of growing the Asian market (something GFF should have done). Lots of growth opportunities there and believe Wilmar will exploit that well.
But the Baking Division, what a shambles, imo, with increased costs and the never ending problem of having to reduce the shelf price to retain volume. Also seems like the manufacturing sites are in need of massive capex to get them to a sustainable manufacturing consistency. They are also saying logistics costs have risen higher than anticipated, strange considering they have been touting over the last few years how much they were going to be saving in streamlining the supply chain costs.
For holders, I hope Wilmar don't pull out, otherwise this will tank, imo. If not for the takeover offer, I'd say some would be saying that Delaney should be pushed, however he may get a reprieve to see out the offer completion.
Would be nice to be a fly on the wall in the Wilmar offices this morning as they soak in this report.
GFF Price at posting:
63.5¢ Sentiment: None Disclosure: Not Held
