Sino Agro Food Inc (fka SIAF)

[RealDutch]

Suppose I am a big investor from Norway and I want to buy into the MF, let's say $100M for a 25% stake. Then I would also want guarantees that Solomon won't spin it off and dilute the crap out of me, unless I agree with the timing of the spin-off. I would also want to provide a loan of $100M so SIAF is able to finance the project.

Which will probably be a convertible bond. Let's say 10M shares with a conversion price of say $10. The problem with that is, it will destroy EPS growth for the next few years.

The crux of the matter is this. Solomon doesn't have enough leverage or negotiating power to get $200M and create shareholder value at the same time.

The only way he can create shareholder value is by acquiring PF1 and PF2 first, preferably from existing cash flow. And then WC1. Then get a partner for the Mega Farm. And a loan.

It ain't going to happen, IMO.
Shareholders need to confront management and ask for a clear path that results in shareholder value. The spin off in its current form will not do that. Also, investors should reward companies that do act in the best interests of the shareholders, and punish the ones that do not. In essence that means, do not invest in this company. Solomon has not earned our money.