Sino Agro Food Inc (fka SIAF)

[Chrysanthemis]

One possibility could be that the "market" ascribes a far lower risk to the distributed TRW shares, as they most likely are immune to dilution. Otherwise the last days Merkur movements are incomprehensible.

Drop of share price 3.6 - 2.25 = 1.35 NOK implicit value of TRW distribution per SIAF share.

As SIAF retains the same number of TRW shares as they distribute (at least), the TRW value per SIAF share after distribution is also 1.35 NOK.

SIAF will also pay a bit more than 1NOK per share in cash dividends over the coming five quarters.

Sum: 2.4 NOK.

I believe that this means either

a) the rest of SIAF is worth less than zero.
b) SIAF remaining assets are subject to a substantial dilution risk rebate
c) the market is inconsistent. :)