Sino Agro Food Inc (fka SIAF)

[snow]

gnu

I think you have misunderstood. We will not have to pay anything for the shares in the aquaculture company. The question is rather what percentage will SIAF retain and what percentage will we get. Since the aquaculture company can be expected to get a much higher rating in p/e terms than SIAF it would seem to be in the interest of shareholders of SIAF to get as high a percentage of the aquaculture company as possible. But we could still he screwed. That would be if the aquaculture company has an IPO that is bigger than desirable or on terms that are not very good. It could be that the people FD is in contact with will be those who provide a lot of the money in an IPO and would therefore gain if the terms are bad for the current shareholders of SIAF. But since the FD people have a convertible bond they too would seem be victims if this were to happen.