That is one way to look at it, but the potential acquisition of Synlait would also be a possible reason why not to inject any more capital into MVM. If A2 takes over, there probably no longer much need for a blending and canning facility at MVM.
Setting aside Synlait's massive debt, I think the cost of building the facility is probably similar to Synlait's market capitalisation at the moment.
Acquiring MVM has already to some extent served its purpose by allowing A2M to push for greater autonomy over its supply chain and loosen SM1's grip.
They are now partnering with other producers (like Yashili and Lactalis) to plug the gaps in the supply chain for products that do not require SM1's SAMR license, such as Stage 4 and the new English label 'Gentle Gold'. It seems those partnerships probably cover the blending and canning capability at least temporarily until the SM1 situation is resolved one way or another.
Media Updates, page-14056
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