A while back people were saying "I think they would be able to find a buyer for Dairyworks". But quite obviously they haven't. And this is because the parties have different views of the value of the asset
And I suspect the same will apply to Pokeno. Obviously it is a very large pile of bright shiny new stainless steel That has cost a lot. But the fact remains "We recorded an impairment charge of $50.3 million, which was primarily driven by the underutilisation of our North Island manufacturing facilities" So Synlait have over invested in stainless steel and product orders are not nearly has high as expected. Not only that but they have higher head count and SG&A costs associated with this underperforming plant. Who would want it?
A2M Price at posting:
$6.15 Sentiment: Buy Disclosure: Held
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