Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last week, beleaguered <a href="https://www.smartkarma.com/entities/605" target="_blank" data-smartkarma-citation="entities:605:1">Mg Unit Trust (MGC AU)</a> announced an <a href="http://www.asx.com.au/asxpdf/20171027/pdf/43nmsfl1l78rrt.pdf" target="_blank">agreement</a> with <a href="https://www.smartkarma.com/entities/25165" target="_blank" data-smartkarma-citation="entities:25165:1">Saputo Inc (SAP CN)</a>, one that befits the internal/external issues faced by the dairy company.The binding agreement comprises an estimated A$0.75 per share/unit distribution at the completion of the transaction (first half 2018); with upwards of a further $0.40 per share/unit once various legal issues are resolved. That last distribution could take years.This is not a great outcome for investors, some who have watched their investment halve from the July 2015 IPO price of A$2.10 (A$0.1259/share in grossed-up franked divs have been paid). But it is a win for farmers who will receive a step up in payments, plus a loyalty payment, a tolerable balm to the April 2016 <a href="http://www.asx.com.au/asxpdf/20160427/pdf/436rx32r4kdvst.pdf" target="_blank">step-down</a>, a management decision that retrospectively cut milk prices, and directly manifested into the current legal proceedings.Optically, pricing looks reasonable and should be balanced with shareholder and regulatory approvals, and a long-dated completion date for final distribution(s). Shares initially popped to $0.95 on the announcement before retreating back below $0.80 this week as the mechanics of the agreement sunk in.More below the fold...

Last week, beleaguered Mg Unit Trust (MGC AU) announced an agreement with Saputo Inc (SAP CN), one that befits the internal/external issues faced by the dairy company.The binding agreement comprises an estimated A$0.75 per share/unit distribution at the completion of the transaction (first half 2018); with upwards of a further $0.40 per share/unit once various legal issues are resolved. That last distribution could take years.This is not a great outcome for investors, some who have watched their investment halve from the July 2015 IPO price of A$2.10 (A$0.1259/share in grossed-up franked divs have been paid). But it is a win for farmers who will receive a step up in payments, plus a loyalty payment, a tolerable balm to the April 2016 step-down, a management decision that retrospectively cut milk prices, and directly manifested into the current legal proceedings.Optically, pricing looks reasonable and should be balanced with shareholder and regulatory approvals, and a long-dated completion date for final distribution(s). Shares initially popped to $0.95 on the announcement before retreating back below $0.80 this week as the mechanics of the agreement sunk in.More below the fold...

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

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Thematic (Sector/Industry)

Last week the immediate shock from the Brexit eased considerably. It has become clear that all the Brexit vote really did was guarantee a prolonged period of uncertainty. It has also become clear that it will take months to gauge the impact that this prolonged period of uncertainty will have on both the Eurozone and global economy.

Last week the immediate shock from the Brexit eased considerably. It has become clear that all the Brexit vote really did was guarantee a prolonged period of uncertainty. It has also become clear that it will take months to gauge the impact that this prolonged period of uncertainty will have on both the Eurozone and global economy.

What Investors Should Be Asking About A Brexit

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

The Seasonally adjusted unemployment rate in the Eurozone continued its downward trend, coming in at 10.2% in March 2016 compared to 10.4% in February and 11.2% in March 2015. The unemployment rate was at its lowest level since August 2011, and the gradual improvement in the labor market is expected to continue.The decline in the unemployment was largely across the board amongst the Eurozone members. It decreased to 10% in France in March 2016 compared to 10.2% in February while it fell to 4.2%…

The Seasonally adjusted unemployment rate in the Eurozone continued its downward trend, coming in at 10.2% in March 2016 compared to 10.4% in February and 11.2% in March 2015. The unemployment rate was at its lowest level since August 2011, and the gradual improvement in the labor market is expected to continue.The decline in the unemployment was largely across the board amongst the Eurozone members. It decreased to 10% in France in March 2016 compared to 10.2% in February while it fell to 4.2%…

Eurozone: Seasonally Adjusted Unemployment Rate Continues to Trend Downwards

Italy

Parmalat SpA produces milk, dairy, and other food products.  The Company markets a wide range of products, including yogurt, cream, fruit juices, and desserts.

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Parmalat SpA (PLT IM)

Murray Goulburn - Saputo Steps Up

Last week, beleaguered Mg Unit Trust (MGC AU) announced an agreement with Saputo Inc (SAP CN), one that befits the internal/external issues faced...

David Blennerhassett

What Investors Should Be Asking About A Brexit

Last week the immediate shock from the Brexit eased considerably. It has become clear that all the Brexit vote really did was guarantee a prolonged...

David Riedel

Eurozone: Seasonally Adjusted Unemployment Rate Continues to Trend Downwards

The Seasonally adjusted unemployment rate in the Eurozone continued its downward trend, coming in at 10.2% in March 2016 compared to 10.4% in...

Rajan Govil

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