I can't agree Bikeguy. $1.80 to $2.20 is far too high for: (1) the amount of risk being taken with respect to ensuring farmers stay on and the level of debt; (2) the value of the assets given poor operational performance of Synlait in recent years. This is a company that is operating cashflow negative and negative NPAT.
The real risk is that the assets are massively overvalued on the balance sheet given we don't know the exact level of underutilisation - compounded if farmers leave.
I think minimoke's analysis is fair, assuming that they don't want to let Synlait default. Also, $130m is just the debt due now, there is more of that in addition to bond holders.
Otherwise, acquire the assets directly from the receivers and leave the bondholders with nothing. I'm not sure how many other buyers there would be for Synlait other than Bright and A2M.
Only the farmers and the banks need to be kept happy.
- Forums
- ASX - By Stock
- SM1
- Ann: Market update deleveraging plan, bank covenants, guidance
Ann: Market update deleveraging plan, bank covenants, guidance, page-75
-
-
- There are more pages in this discussion • 35 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SM1 (ASX) to my watchlist
|
|||||
Last
37.0¢ |
Change
0.005(1.37%) |
Mkt cap ! $80.87M |
Open | High | Low | Value | Volume |
36.5¢ | 37.0¢ | 35.5¢ | $13.60K | 37.22K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 6350 | 37.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
39.0¢ | 8500 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2859 | 0.350 |
1 | 2576 | 0.340 |
1 | 9000 | 0.335 |
1 | 3128 | 0.320 |
2 | 2650 | 0.305 |
Price($) | Vol. | No. |
---|---|---|
0.390 | 8500 | 1 |
0.395 | 2502 | 1 |
0.425 | 2355 | 1 |
0.445 | 3444 | 2 |
0.450 | 3224 | 2 |
Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
Featured News
SM1 (ASX) Chart |