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hi hotstock, welcome aboard... may i ask how you came across SGGV? was it the recent news stories out on the wires?
yeah it went through now.... this is getting pretty dang cool... i think we got in bed with a monster......you really gotta hand it to Chris...he saw this opp. and jumped on and grabbed the horns with both hands...LOL
that link dont work mike...can u copy and paste that?
i like this part the most.....
Patrick P.L. Chan, Euro Asia's Chairman and CEO, stated, "With the addition of Daniel Zheng to our board, we have acquired an accomplished business professional with strong capabilities in finances, general management and business development. His entrepreneurial skills will add greatly to Euro Asia's skill set and we are now ready to set forth on a new path to future growth."
they have updated the web site with that news story you found.
http://www.eu-asia.net/news160418a.html
must be a MM code for (I NEED SHARES)...
yeah and i dont think there is alot of free shares out there for sale and L2T tapped out last year i think. so we could be in for a real rocket ride.
the chart is really looking good. even though the volume is low it makes you wonder what happens with a 2 or 3 million share day? also spark said we need buying from china and when that starts this will blow us away i think.
WOW.....nice work mike!!!
this is just getting started IMHO... we are going to get so much news that we wont know what to do with it all...we really do deserve it though so enjoy everyone and don't sell too soon because like i said...i think we are just getting started. GLA, paydirt
boy silver 3 cents to 15 cents looks like a lock and in short order too. all kinds of news will be coming soon as far as new web site design, maybe to both web sites? new board member 8k, new share count, news on properties owned and used as timeshare units and more and more. so we go from snooze fest to fountain of nonstop excitement with little ol SGGV......
i missed that, thank you.
i will buy you the best bottle of single malt i can find...
if that happens i will buy a timeshare from them :)~
hi spark, its pretty clear that he wants things to happen yesterday so im happy about it. we have all waited along time so lets hope the flood gates open with lots of news and rising stock price.
hi mike, yeah i just read it and things are rolling along quickly with new deal. no mention of other so looks like no go there. so we have a new partner and hotels and land and a new timeshare platform of some sort to sell timeshares to the masses of china and we still have 1 phosphate mine in mothballs. i sure hope that the new board member/partner, wants a listing in china for sterling because i think they could present it well there and we would go along for the ride over here.
this move is interesting mike. in with the new.....out with the old...looks like the young gun is finding a new path. the more i think about this the better i like it.
NEWS OUT !!!!!!!
Sterling Group Ventures, Inc.: Resignation of Director
VANCOUVER, BC / ACCESSWIRE / April 12, 2016 / Sterling Group Ventures, Inc. (OTCQB: SGGV) advises that Richard Shao has resigned from his directorship of Sterling Group Ventures Inc. and all its subsidiaries (the "Company") for personal reasons. He has assured the Board that he will provide assistance in any way he can to make this a smooth transition. Christopher Tsakok will act as President of the Company and Robert Smiley will act as CFO. We thank Richard for his years of service to the Company and wish him well in his future endeavors.
ON BEHALF OF THE BOARD OF DIRECTORS
STERLING GROUP VENTURES, INC.
"Christopher Tsakok"
_______________________
Christopher Tsakok, MBA CFA
CEO and Chairman
For further information, please check the Company's SEC 8-K filing or contact:
Robert Smiley, JD, Director, Chris Tsakok, CEO
Phone: (604) 684-1001 Fax: (604) 684-1001
info@sterlinggroupventures.com www.sterlinggroupventures.com
Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors, product prices and changes in international and local markets, as well as the inherent risks of the mining related business. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE: Sterling Group Ventures, Inc.
© Copyright © 2016 Accesswire. All rights reserved.
yeah, i think spark had it right when he said nothing will happen from us as far as the stock price goes. it has to happen from those involved in china. the billion dollar dude will have half the company stock and if he wants a listing on one of the china exchanges for an ipo there then we will see some fireworks. we also are in for the Q file and maybe some clarity with this deal and the other. anyhow bring on the prs and let the good times roll.....
whatever the case maybe, i think any moves foward are far better than sitting and waiting for things to happen so im good with it. i hope they are doing both.
im digging into them mike and posting what find....i wonder if this means they decided not to do the other merger plan?
Euro Asia Premier Real Estate (HK) Ltd
"Under the terms of the agreement, Sterling acquired Euro Asia Premier Real Estate (HK) Ltd ("Euro Asia (HK)"), based in Hong Kong and which is owned by Chenguo, to be used as a vehicle in the development of a leisure timeshare exchange platform to be operated in China and in other parts of the world to take advantage of interest and outflow of tourism from China. Sterling will deploy US$ 1 million of its cash in order to speed up the development of the aforementioned leisure timeshare exchange platform."
http://www.eu-asia.net/index.html
http://www.eu-asia.net/projects.html
Well the silence is deafening......
Time Shares.....Who Knew :)~
NEWS OUT !!!!!!!!!!!!
Sterling Diversifies into Timeshare Exchange Business and Resort Properties in China
VANCOUVER, BC / ACCESSWIRE / April 11, 2016 / Sterling Group Ventures, Inc. (OTCQB: SGGV) ("Sterling") is pleased to report that on April 9, 2016, Sterling signed a definitive agreement with Chenguo Capital Limited ("Chenguo") of 50th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong, SAR, a company owned by Mr. Hanwei Guo of China, an entrepreneur with interests in real estate and investments in China. As a result of the transaction, Sterling will diversify to also become a timeshare exchange provider, a manager of timeshare assets through agreements, and a developer of timeshare assets with fee relationships with other organizations or resorts.
Under the terms of the agreement, Sterling acquired Euro Asia Premier Real Estate (HK) Ltd ("Euro Asia (HK)"), based in Hong Kong and which is owned by Chenguo, to be used as a vehicle in the development of a leisure timeshare exchange platform to be operated in China and in other parts of the world to take advantage of interest and outflow of tourism from China. Sterling will deploy US$ 1 million of its cash in order to speed up the development of the aforementioned leisure timeshare exchange platform.
Chenguo also owns the rights to two (2) hotels currently under completion and a parcel of land in Weifang, Shandong Province. According to appraisals done in 2011 by DTZ, a global real-estate appraisal and valuation company that recently merged with Cushman Wakefield, the properties were appraised at a combined value of 327 million RMB or approximately US$50.6 million. These properties are presently finalizing a court approved auction process due to a default on loans advanced by Mr. Guo through a trust company, under which Euro Asia (HK) will either receive the proceeds from the auction, if the assets are sold for fair market value, or the titles to the properties. These properties or the cash received from auction shall be reorganized into Euro Asia (HK), which Sterling has acquired. If properties are acquired and vested to Sterling and/or its subsidiary, we will then sell the properties as timeshare units at an expected premium above appraised value. The properties will be organized and securitized into retail timeshares and will be entered into the timeshare exchange network currently under development and which will be owned by Sterling.
Chenguo will also offer to Sterling other assets it owns, in full or in part, including other leisure property or third party assets it is presently negotiating to be included in the platform. Sterling will agree to become the exclusive seller of these properties. It is projected that Sterling will only repay 75% of the properties' appraised values. Projects under negotiation include over 1 billion RMB to be contracted over the next 12 months.
Under the terms of the agreement, Sterling will issue 85,000,000 shares to Chenguo in escrow, so that Chenguo will own a significant portion of Sterling on a proforma basis. The escrow arrangement contemplates that if within 9 months the Shandong properties or the rights to sell other assets have not been reorganized into a subsidiary of Euro Asia (HK), 50% of the shares in escrow will be cancelled. In addition, Chenguo will reimburse up to $1 million USD to Sterling. If this persists to 18 months, the remaining shares in escrow will be cancelled and the obligations of both parties will be null and void.
Sterling will also issue to Chenguo redeemable, voting, non-interest bearing, convertible, preferred shares in escrow. These preferred shares shall be redeemable for cash equal to 75% of the appraised value of the aforementioned properties and will be convertible at no less than US$0.50/share. Redemption will be subject to adequate discretionary cash on hand to continue operations. Any proceeds in excess of this amount will be retained as an asset of Sterling.
In order the aid in the financing of the project, Chenguo has also agreed to a US$ 3 million private placement at US$0.15 to close on or before August 1, 2016. Mr. Hanwei Guo has also agreed to join the Board.
A finder's fee of 8 million shares will be paid.
ON BEHALF OF THE BOARD OF DIRECTORS
STERLING GROUP VENTURES, INC.
"Christopher Tsakok"
_______________________
Christopher Tsakok, MBA CFA
CEO and Chairman
For further information, please check the Company's SEC 8-K filing or contact:
Robert Smiley, JD, Director, Chris Tsakok, CEO
Phone: (604) 684-1001 Fax: (604) 684-1001
info@sterlinggroupventures.com www.sterlinggroupventures.com
Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors, product prices and changes in international and local markets, as well as the inherent risks of the mining related business. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE: Sterling Group Ventures, Inc.
© Copyright © 2016 Accesswire. All rights reserved.
gm mike, yes they had 3 months to get everything worked out. i guess next week will tell all i hope. the market itself for ferts and other things related seems to be bottomed out and starting to make the turn and timing for this looks good on both sides. anyhow looking forward to this coming week, gl to us all, paydirt
Sterling Signs LOI with Hubei Yaozhihe
Sterling Signs LOI with Hubei Yaozhihe Chemicals Co. Ltd, A Phosphate Producer in China
December 3, 2015 12:29 PM
VANCOUVER, BC / ACCESSWIRE / December 3, 2015 / Sterling Group Ventures Inc. (SGGV) ("Sterling") is pleased to provide the following press release:
On November 25, 2015, Sterling signed a letter of intent with Hubei Yaozhihe Chemicals Co. Ltd. Hubei Yaozhihe Chemicals Co. Ltd. holds 5 mining permits and 4 exploration permits and, according to the company, produced approximately 1.9 million tons of phosphate rock in 2014. The letter of intent provides Sterling with exclusivity to April 1, 2016 and includes 50% of its Qiaogou property, of which the other 50% was recently sold to Xingfa Group for RMB 301,719,400 Yuan. Subject to performing the necessary due diligence, the parties agree to form a joint venture company, whose structure is to be negotiated, which will conduct and operate the phosphate properties and chemical plants under Hubei Yaozhihe Chemicals Co. Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS
STERLING GROUP VENTURES, INC.
"Christopher Tsakok"
Christopher Tsakok, CEO
Thriving Chemicals Industry in China
Thriving Chemicals Industry in China and Heightening Demand for Phosphate Fertilizers to Drive Global Sulfuric Acid Market
Albany, NY -- (SBWIRE) -- 04/04/2016 -- Sulfuric acid is widely used across numerous applications and has a part to play in the production of nearly all manufactured goods across the globe. The major use of sulfuric acid is found in the manufacture of fertilizers such as superphosphate of ammonium sulfate and lime. It is also widely used in the production of several chemicals such as nitric acid, hydrochloric acid, synthetic detergents, sulfate salts, explosives, drugs, and a variety of dyes and pigments.
Additionally, sulfuric acid is used in the process of petroleum refining for washing out impurities of gasoline and other refinery products. It also finds use in several operations in processing of metals such as in cleaning steel and iron before plating them with zinc or tin. Sulfuric acid plays a significant role as an electrolyte in lead acid batteries commonly used in vehicles. Being one of the most important industrial chemicals, the production of sulfuric acid is increasing every year than any other manufactured chemical.
A recent market research report published by Transparency Market Research projects a moderate rise in the global market for sulfuric acid over the next few years. The report states that the market will exhibit growth at a 2.6% CAGR between 2015 and 2023, rising from a valuation of US$67.99 bn in 2014 to US$85.40 bn by 2023.
Thriving Chemicals Industry in China Anticipated to Boost Sulfuric Acid Market Demand
The rapid pace of industrialization in China in the past few years has significantly benefitted several allied industries as well, point in case is global sulfuric acid market. China is currently the largest chemicals producer in the world, having facilities for the production of over 45,000 chemicals. The thriving chemicals industry in China is likely to give a significant impetus to the global sulfuric market. Much of the sulfuric acid consumed in the country (an estimated 70%) is currently used for the production of phosphate fertilizers. The remainder of sulfuric acid is consumed by sectors such as rare earth metals, manganese, and dyes and pigments.
As China has limited resources of sulfur, the country imports a large quantity of sulfur to meet the ever rising demand from several industries. However, the rising concerns regarding effects of sulfur dioxide emissions on the quality of air, soil, and water in the country are pressing government bodies to control the total output of sulfuric acid.
Expansion of Global Phosphate Fertilizers Market Likely to Increase Consumption of Sulfuric Acid
The blooming market for phosphate fertilizers is expected to be the biggest driver for the global sulfuric acid market in the near future. The mounting global population and the resultant rise in demand for increased production of crop yield are expected to drive the market for phosphate fertilizers. The segment of phosphate fertilizers accounts for a massive share of 60% in the global sulfuric acid market. As such, growth of this major end-use segment is expected to give a significant push to the global sulfuric acid market in the near future.
Phosphorus Industry China Monthly Report 1602
By PR Newswire: 03/09/16 - 04:20 PM EST
LONDON, March 9, 2016 /PRNewswire/ -- In Feb. 2016, market conditions for China's phosphorus chemical industry were quite stable. In particular, market prices of upstream products such as phosphorus ore and yellow phosphorus began to increase slightly while those of downstream products such as phosphoric acid and phosphate continued to decline. In addition, influenced by Chinese Lunar New Year, many phosphorus chemical manufacturers suspended production, leading to a declining operating rate. Company dynamics:Yunnan Yuntianhua split and reconstructed its subordinate Chongqing R&D Center and plans to set up a wholly-owned subsidiary and add alternative energy to its business scope. CCM believes that besides relying on its fine phosphate business, this may be the first step for Yunnan Yuntianhua entering into the field of Li-ion batteries.Kingenta planned to build a wholly-owned subsidiary (Xinjiang Puhui) in Xinjiang to engage in sales of fertilizers. Considering that Kingenta has built a new-type crop fertilizer production project in Xinjiang, to build a subsidiary will help Kingenta to optimize its operation distribution, improve its operating efficiency and accelerate the process of market expansion and promotion.JPMC and China's CQMM planned to build a phosphate fertilizer and phosphoric acid plant in Aqaba, Jordan with an investment of about USD1.40 billion.In this issue, CCM reviewed the market conditions of yellow phosphorus in China in 2015. Specifically, market price kept dropping after remaining stable in a short term in Q1 2015. Operating rate was lower than 40%, mainly because of insufficient demand caused by the depressed downstream products (like glyphosate and phosphate) market conditions.The USD/RMB exchange rate in this report is USD1.00= RMB6.5539 on 1 Feb., 2016, sourced from the People's Bank of China. All the prices mentioned in this report will include the VAT, unless otherwise specified.At present, in Feb. 2016, China's ammonium phosphate market is depressed and trading is lax. CCM predicts that China's ammonium phosphate market will remain depressed in Q1 2016 and will struggle in its attempts to rally prices.In 2015, as market price of yellow phosphorus kept declining in China in 2015, profit margin became more and more meager, most Chinese yellow phosphorus manufacturers reduced their operating rate. CCM predicts that China's yellow phosphorus market may remain as depressed as in 2015 this year considering that market conditions of downstream products of yellow phosphorus are not likely to recover in 2016.In Feb. 2016, Shenzhen Batian disclosed that its application for a non-public offering of shares had been approved by the CSRC. This allows for the steady enhancement of both its new compound fertilizer business, and its strategic plan to develop a new sales model, and will help its business to achieve innovation and upgrades, as well as increase its performance.In Feb. 2016, Kingenta planned to build a wholly-owned subsidiary (Xinjiang Puhui) in Xinjiang to engage in sales of fertilizers. Considering that Kingenta has built a new-type crop fertilizer production project in Xinjiang, to build a subsidiary will help Kingenta to optimize its operation distribution, improve its operating efficiency and accelerate the process of market expansion and promotion.In Feb. 2016, Guizhou Chitianhua announced that its major reorganization of assets had made gradual progress. When Guizhou Chitianhua finishes the reorganization, it will add pharmaceutical business which has strong profitability and a wide market foreground, to develop a "Pharmaceutical + Chemical" operation mode, which can help the enterprise to reverse the operation downturn and make more profits.At the end of Jan. 2016, Hubei Xingfa released its 2015 performance forecast, showing that its net profit fell dramatically in 2015 due to it falling from a substantially higher than average net profit in 2014, and not because of a decline in profitability. In 2014 it made a non-recurring profit and loss of USD67.35 million ( RMB438 million) which is a far cry from 2015. However, if you disregard the influence of non-recurring profits and losses from 2014 on net profit in 2015, Hubei Xingfa actually made an YoY increase. With Hubei Xingfa's phosphorus ore exploitation projects progressing smoothly, CCM believes it will continue to perform well in the future.Though the output in China's chemical industry had increased in 2015, the whole industry was still haunted by four problems: weak investment, compulsory limitation on production capacity by the government, heavier taxation and increasing manufacturing costs.In early Feb. 2016, Yunnan Yuntianhua split and reconstructed its subordinate Chongqing R&D Center and plans to set up a wholly-owned subsidiary and add alternative energy to its business scope. CCM believes that besides relying on its fine phosphate business, this may be the first step for Yunnan Yuntianhua entering into the field of Li-ion batteries.In Jan. 2016, market price of phosphorus ore was quite stable in China as downstream phosphate fertilizer and yellow phosphorus markets maintained depressed. Meanwhile, as Chinese Lunar New Year was coming, successive domestic manufacturers began to stop mining and maintain relationships with old clients by relying on inventory. CCM predicts that market price of phosphorus ore may remain stable while transaction volume may decrease in the short term.In Jan. 2016, China's phosphoric acid market remains sluggish. Market prices of upstream products such as phosphorus ore and yellow phosphorus, increased slightly while operating rate of its downstream phosphate market kept declining. Under the influence of cost pressure and insufficient demand, market price of phosphoric acid remained stable and operating rate slid.
ICL buys into Chinese phosphates major
By RJ Whitehead, 18-Jan-2016
Global speciality fertiliser manufacturer ICL has completed a 15% investment in China’s leading phosphate producer and the parent company of its partner in a joint-venture in China.
http://www.foodnavigator-asia.com/Business/ICL-buys-into-Chinese-phosphates-major
Yeah Buddy...it sho is...
there's really nothin to talk about until we see how this shakes out and what we get out of this merger. it doesn't help to get up everyday and read all the bad press on china and the end of the world crap. the things that I try to keep in mind are, china is not going to turn off the demand for everything and though it may have slowed down....its still the big dog and as far as the merger goes, the old man and chris want to get paid and that tells me that we will do just fine, maybe not fireworks but I think we will unlock the value of our shares. anyhow gl refill and happy new year, paydirt
Phosphate Outlook 2016: Steady Demand on the Horizon
For investors interested in phosphate, the fertilizer material is expected to perform well in the coming year.
Vivien Diniz • December 23, 2015
For investors, the 2016 outlook for most commodities has been less than impressive. In fact, it seems that for the coming year there is not much of an expectation for a swift recovery in the metals markets. Luckily for those interested in phosphate, the fertilizer material is expected to perform well in the coming year.
Phosphate supply and demand
As outlined by the Food and Agriculture Organization (FAO), phosphate has been on an expected upward trajectory. The organization noted that between 2012 and 2016, phosphate was expected to increase by three percent per year. Meanwhile, demand for phosphate was also expected to increase – albeit at a slightly lower rate – by two percent for the same period.
Potash West NL (ASX:PWN,OTCPINK:PWNNY) in Western Australia and has one of the world’s largest glauconite deposits. The company has also developed a proprietary K-Max process to extract Sulphate of Potash (SOP) and other co-products from glauconite. Connect with Potash West NL and get a full presentation on this AgTech company.
Overall, the FAO looks at world phosphate demand having increased from 40.6 million tonnes in 2011 to 45 million tonnes in 2016. For P2O5, specifically, demand was expected at 3.5 million tonnes between 2012 and 2016, 58 percent of which would be in Asia and 24 percent in the United States. The FAO noted that the majority of demand from Asia is expected to originate from India, followed by China and Pakistan.
Looking ahead, the FAO points to Africa as a demand driver for phosphate, noting that in 2011 Africa accounted for 2.9 percent of global fertilizer consumption. The organization further elaborates on its expectations, writing that from 2012 to 2016, it anticipates the growth rate for phosphate demand to be 2.9 percent. The FAO also expects Africa to maintain its status as major exporter of phosphate.
Investment shows confidence in phosphate sector
Nothing boosts confidence an an industry more than investment by a large company. And if ICL’s (TLV:ICL) recent activity in Africa is any indication, the region could play a big role in the future of fertilizers.
In June 2015, ICL completed its acquisition of potash development favorite Allana Potash. Fast forward to December, and the company has inked a memorandum of understanding with LLNP Ltd, a Namibian subsidiary of the Leviev Group. According to the company’s press release, LLNP was hired to perform a “feasibility study to establish a world-scale phosphates and downstream production business in Namibia, including fertilizer-grade phosphoric acid, white phosphoric acid, bulk fertilizers (e.g. MAP and DAP) and specialty fertilizers.”
“The cost of extracting the phosphate is anticipated to be very competitive compared to competitors, which, in turn, is expected to enable downstream production to deliver best cost of goods,” ICL said in a statement.
Meanwhile, several other companies were able to secure much needed funding, which is particularly of note given the tough market conditions.
Included among those phosphate juniors who successfully raised some capital was DuSolo Fertilizers (TSXV:DSF) whose largest shareholder Tembo Capital Mining Fund put forward a C$750,000 bridge loan facility. DuSolo was also busy this year, having entered into an agreement with Mineração Batalha e Participações to acquire the São Roque phosphate project.
Also in Brazil, Aguia Resources (ASX:AGR), completed a private placement for AU$9.5 million through the placement of 55.88 million new fully paid ordinary shares. The company should be fully funded for roughly two years and vowed to commence environmental permitting at the flagship Tres Estradas phosphate project immediately as well as an aggressive drill program at Joca Tavares and Cerro Presto.
Potash West NL (ASX:PWN,OTCPINK:PWNNY) in Western Australia and has one of the world’s largest glauconite deposits. The company has also developed a proprietary K-Max process to extract Sulphate of Potash (SOP) and other co-products from glauconite. Connect with Potash West NL and get a full presentation on this AgTech company.
Firm phosphate outlook for 2016
While the 2016 outlook for potash is less than stellar, investors could breathe a little easier knowing that this is not the same across all fertilizers. As Agrimoney reported earlier in December, “VAT increase could bring upward pressure on prices due to ‘higher Chinese raw material costs,’ the decline in the yuan ‘could weigh on global markets as it makes Chinese producers more competitive.'”
Agrimoney noted that prices of diammonium phosphate (DAP) have fallen in 2015 by 15 percent, according to Credit Suisse. However, phosphate rock prices have climbed by seven percent in Morocco, the top exporter of phosphate rock.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
Noble's Stake Sale Would Cap Record Agriculture Deal Spree
December 15, 2015 — 8:49 PM PST
The number of agricultural deals has accelerated to a record this year as producers including Noble Group Ltd. and Glencore Plc seek to divest stakes in assets and buyers look beyond plunging prices to secure long-term access to food supplies.
Noble, Asia’s largest commodities trader, is talking to potential purchasers about offloading its 49 percent stake in Noble Agri Ltd., which has trading and processing businesses in regions including South America, Africa, eastern Europe, India and Australia. Glencore has said it plans to sell a minority stake in its agricultural business, which trades commodities from wheat to cotton.
A total of 410 deals, worth about $32 billion, have been completed or agreed in agriculture this year, the highest number in at least 12 years, according to data compiled by Bloomberg. Activity increased even as prices for materials declined, with the Bloomberg Agriculture Subindex of eight globally traded crops falling 14 percent this year.
“The food thematic is very strong,” Belinda Moore, an analyst at Morgans Financial Ltd. said by phone from Brisbane. “All it takes is some bad crops somewhere or a weather event and soft commodity prices will be up strongly and we’ll be talking about food shortages and how countries are going to feed growing populations.”
The average deal premium in agriculture has risen to 41 percent this year from 27 percent in 2014, the data show. The value of deals in the sector last year rose to $66 billion, the highest since 2007.
Cofco Potential
Cofco Corp., China’s largest food company, is one of the potential buyers of the remaining stake in Noble Agri, according to a person familiar with the matter. Cofco already leads a group that owns 51 percent of the unit, which it bought for $1.5 billion.
“If there’s 1 billion people to feed, then it makes more sense to pay a premium to secure a food source,” Carey Wong, a Singapore-based analyst at Oversea-Chinese Banking Corp. said by phone. “In a situation where there’s an acute food shortage, you basically own the farm. That’s incentive enough.”
China has 21 percent of the world’s population with just 9 percent of its arable land, and an even lesser percentage of fresh water, according to Jefferies Group LLC.
Tumbling prices are also spurring dealmaking in the sector, according to Nobuyuki Chino, president of Continental Rice Corp., a grain-trading company in Tokyo. “Falling grains prices globally have eroded earnings of producers and traders, prompting some companies to sell their less-profitable agriculture sectors to others,” said Chino, who has traded grains including corn, rice and soybeans for almost four decades.
Diversification
Should Cofco acquire the balance of Noble’s agricultural unit it would allow the further integration of its trading operations, envisioned when Cofco bought its initial stake in Noble Agri and took control of Dutch grains supplier Nidera BV last year.
Large producers and trading companies are seeking to increase the diversification of their portfolios in part to tap demand from rising numbers of middle class consumers in developing economies, a factor that’s likely to drive continued dealmaking, according to Morgans Financial’s Moore.
“It’s about further product diversification across different commodities, further geographic diversification,” Moore said. “Being able to supply to the growth markets of Asia and Middle East, having that leverage and owning strategic assets is a very powerful argument to your customer.”
It would not surprise me if LearnToTrade is doing the same thing with the cardboard boxes after unloading so many shares this year :)
I will say though that so far he was right but the fat lady ain't singing yet.....
Hi Mike, no I don't, I'm just guessing like everyone else...
It does make sense though to list on 1 of the exchanges in china after the merger is done because after googling the other company, it seems they are well known and sterling itself is not. So like I said before, they change the name, stock symbol, and stay with listing here and add a dual listing on 1 of the other exchanges. Like I said, its just my 2 cents worth and my guess only. gl, paydirt
Oh and a dual listing on the SSE Composite Index :0)~
We are gonna ROCK!!!!
Hi Mike, As you said before, nothing will happen as far as stock price until it does :0)and who knows when that will be. what we do know is they have until end of 1st Q 2016 to do whatever they are gonna do and as spark would say, "kick back and smokem if ya gotem"
My opinion is that they merge the 2 companies under SGGV shell and operate the biz of (all that is phosphate) as the other company name and change the stock symbol to reflect that. also I see a dramatic change in share amounts of whatever they think is fair to all involved. Now keep in mind the amount of shares they hold and I don't think they would screw themselves and in the process us, so I'm comfortable holding to see what happens. gl all, paydirt
Mike this really is great for us and them and after everything is signed sealed and so on, I can see them really opening up our property and maybe even putting some sort of chem. plant there as well.
"the parties agree to form a joint venture company, whose structure is to be negotiated, which will conduct and operate the phosphate properties and chemical plants under Hubei Yaozhihe Chemicals Co. Ltd."
The more I think about it the more I think you are right about the stock price, we could be talking 5 10 20 a share depending on structure of deal, of course its hard to say how its going to shake out as far as number of shares we have after deal is done but at this point I think we will make out very well. GL all, paydirt
Nightroads good to hear from you, lets hope we get payed well for waiting and this happens quickly before end of year. That would make sense to me and the 8k tells me that they already have done there DD and are now just dotting the I's and crossing the T;s. If I had to guess on an amount, I would say between .25 and .50 cents per share (IMHO) as a combined company. We shall see....
Hi just, we all know its been the pitts for all commodity related stocks but the value is still here and I think just the fact that they are doing this proves that and cant wait to see what happens next. maybe L2T will chime in next...LOL TGC,paydirt
Mike ino this is going to sound crazy but I think when they iron out the all details for the merger and have a rock solid plan, the stock gets halted (and you better own it before that) it may well open much higher than any of us expect. the old man holds a chit load and uno he wants good money for his shares and those stock ops that were awarded were at 25 cents and the stock price has never reflected the value of the mine we own let alone the cash in the bank and the shell value of a listed company...this is not taking into effect what the other company brings to the table... so I fully expect fireworks.
Boy things are sure getting interesting around here...
IHUBs heavy hitters showing up.... MMs that I haven't seen here before showing up.... 8ks being issued and PRs to follow soon I hope... and all before X-mas... lucky us... GL all :)~