In answer to the title of the thread, I'm going to go out on a...

In answer to the title of the thread, I'm going to go out on a limb and speculate that A2 will now seek to consolidate into a vertically integrated company by securing supply and facilities (the latter is already announced). This is the next stage of it's journey.

To do so, I would imagine the company will (at some point) run a ruler over acquiring Synlait. I can see some benefit to doing this (supply, facilities, freedom from IF contractual obligations), but it would require a C/R. Other options may present themselves, but it depends on their IF plans on mainland China.

Either way, I hold interests in both A2M and SM1 so I have gone 50-50 each way. But that's what I expect to see in the future. Or hope to see.

Initially, I thought the likelihood of A2 being a takeover target was high and remain surprised it hasn't happened. But I think it's too expensive now.

Anyways, just my thoughts. Pure speculation on my behalf... but it makes sense if A2M is keen on significant up-scaling and further growth. The main issue would be convincing SM1's larger holders to sell their stakes.

Again, I hold interests in both companies. But this is why I hold both!

Baron