You make it out like Synlait would be fine if only A2M would go...

You make it out like Synlait would be fine if only A2M would go easier on them.

First off, that's not actually true. Even if A2M still sourced all its production from Synlait it would hardly change the situation Synlait is in. After all, as you point out, they still do supply the major component of A2M's business, and would continue to do so until 2027 even if they lost exclusive supply rights.

The issue with Synlait is its sole reliance on A2M and failure to diversify any other revenue sources. So when A2M experienced a downturn, Synlait copped the flow on effect. A mutually beneficial relationship is fine and all, but it's unreasonable to expect A2M to sacrifice its own margins or the timely supply of its products in order to gift Synlait a better deal, or overlook its failure to maintain DIFOT.

Synlait is a poorly run company. If it can't find customers to utlise the facilities it has put itself in massive debt to build, there is not really much A2M can do about that. The last thing it should want is a closer relationship with Synlait. A2 management is correct in moving in the opposite direction. They have done what they can to secure SAMR supply arrangements which is basically all keeping Synlait afloat.

If something like your asset sale scenario above played out, it is a risk AND an opportunity. A2M buying Dunsandel would be massive opportunity to resolve the Synlait matter once and for all and achieve full control of its own supply. The risk is that it may need to pay a very high price in order to make the purchase. I think it would be fair to say they would no longer have much in the way of a 'cash pile'. But they would be far from "buggered" as you put it.