Sino Agro Food Inc (fka SIAF)

[RealDutch]

The deposits in 2013 equal roughly $30M (there was already deposited some in 2012). We should expect roughly the same for 2014 (excluding the mega farm).

When SIAF signs a new contract for development of a new farm, they usually have 6 months to make up their mind about whether they will acquire a stake or not. The JV partner owns it, and he is not going to sit around and wait forever. He offers a 75% stake for book value. He wants SIAF to take that offer because SIAF operates the farm and because he needs the money.

So, SIAF has to decide early on whether they acquire a 75% stake or not. That all happened like 2 years ago for PF2 and PF1.

So SIAF has a commitment to make those deposits. Otherwise the JV partner would have been better off selling a 75% stake to third parties for a much higher price.