Amused Observer just wondering would your thoughts change if MG...

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Newry2

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20/09/17

20:33

Post #: 27353154
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Originally posted by Amused observer ↑

My view?

No whole-of-company offer will get through and MGC will resize itself to a smaller milk supply. The resize will involve a substantial divestment of various assets and a rethink of the product suite, brands and market they want to be in. The asset divestment will appeal to many of the current parties that have lodged offers up to last Friday as they need to stay in the bidding to be able to get a crack at securing any of the assets at a future date, possibly early to mid-next year.

By the way the divestment of various asset will not need to go to the shareholders for a vote or be tested by the ACCC for competition reasons or the FIRB for offshore assessment reasons whereas the whole-of-company sale does. Even a BEGA offer will come under the ACCC scrutiny.

As for unit-holders, they are only on this for the ride and will have to take whatever is offered and agreed by the shareholders. Unless MGC takes a path of a major restructure and that is a whole different conversation that doesn't warrant further exploration until the current activities have played out.

Whether I think this is the best for the company or the best for the industry is a very different question and not sure I want to comment on this one at this point.

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Amused Observer just wondering would your thoughts change if MG were to put out statement that we can no longer go it alone? Two months ago before big losses in Gippsland we could have become a Gippsland and Northern co-op, now more difficult. Really only enough milk in Gippsland for Leongatha. Ability to right size has passed.

MGC Price at posting: 77.5¢ Sentiment: Buy Disclosure: Held
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Amused Observer just wondering would your thoughts change if MG...

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