shv vertical integration, page-2

Rainmaker, whilst SHV have the infrastructure, eg hulling and cracking plant, harvesting equipment, food processing, packaging, etc it is not hard for Olam to replicate that infrastructure.

The issue is what Olam want from their investment in almond orchards, are they happy to sit back as passive investors and let SHV do the rest for a fee or do they want to control the whole supply chain from growing through to processing and marketing.

Personally I suspect that Olam's comments indicating an uncertainty about SHV's future role is a ploy to weigh on the share market thus keeping the share price down whilst they negotiate to acquire TIM's shareholding in SHV.

I would not be at all surprised to see an announcement from Olam of their acquisition of TIM's interests in SHV to coincide with a full takeover bid for the remainder of SHV. TIM currently owns 4.5m shares in SHV or 11.4% of the shares on issue.

Up to $200m for SHV? Sufficient infrastructure to meet current and future harvesting and processing needs, a further 9k acres of orchards with expansion options of up to 10k acreage available in WA, permanent water rights, food processing facility, etc.

I won't be surprised if a takeover offer is made, but I am not certain that it will eventuate. Surely the administrator of TIM will need to sort something out shortly with the SHV shares that TIM still owns.