Sino Agro Food Inc (fka SIAF)

[ValueInvestor01]

Because the $3.40645 value per TRW share they are using for the distribution is based on Q3/2016, the carve-out date. At the time, SIAF owned 36.6% or 36.6M TRW shares for a total of $124.67M. That was the investment at cost which SIAF booked at the time. They are distributing half, or 18.3M shares, or $62.3M.

Since that time, TRW has made money. SIAF received its fair share of profit, 36.6%. So the investment at cost now for SIAF, as of Q2/2018 is $141,999,564. Almost $20M more.

Investment cost does not equal value, I don't know why you all getting mislead by that, you can build a company that has billion of dollars worth of assets but if it is producing only a fraction of that, it is not worth billions. Just like Warren Buffet said, "price is what you paid, value is what you get." until we see the whole spectrum of the business through financial statements, those numbers are meaningless.