We make money from the IPO (or the "buy in" from a new partner / merger).
The old numbers were a multiple of 16 (based on Deloitte and Touche projections), $200M revenues (ttm estimate), 25% profit margin (estimate), $800M valuation, IPO occurs in late 2015.
We "officially" own 45% of SJAP. We unofficially own more but it cannot be explicitly stated because of Chinese law, VIE structure, etc.
Another salient question has been how much would they "spin off". Would it be 25%? 50%? Solomon has stated that SIAF would retain control.
The new numbers are $1B valuation with IPO occurring in late 2016.
Say they sell off 25% (with no discount, i.e., multiple of 16). That's $250M. The old estimate, if I remember correctly, was 70% would go to the parent company (for future endeavors) and 30% would flow to the shareholders.
That's $75M or $3.33 per share ($250M X 30% = $75M / 22.5M shares).
As Tomatom intimated, if SIAF can spin-off SJAP at a 16 multiple, how could the parent company be valued at a lower multiple? Given we're at a 1 P/E now, the indirect benefits of this spin-off could be more significant than the direct benefits of the spin-off. Win-win.
The spin-off is a ways into the future though. Late 2016 at the earliest.