Sino Agro Food Inc (fka SIAF)

[ks1977]

the other 2 suck into infinity

lol Yes, I agree, but it wouldn't be the first time Solomon does something that sucks into infinity...

What we do know is that they have been working on this with their lawyers for quite a while, so it is possible that their lawyers have found a solution that bypasses the third option (which makes sense if and only if the third option leads to a tax burden for SIAF), but people need to be very careful.

With regards to "transferring" shares from Merkur to OTC I believe a 20% premium is on the very high end of what is acceptable (if we do have two ex dates); this means that one has to sacrifice 1/6th of the SIAF-shares, hence 1/6th of the cash dividend and 1/6th of the remaining. Assuming a book value pr share of 10$ including the TRW-distribution this means a loss of (10-1.25)/6 = 1.45 for the additional 1.25 worth of TRW-shares (I'm ignoring the second distribution since that depends on the collateral shares being returned and hence also that book value pr share will increase). So this becomes a play on which asset is worth the most (in terms of book value), and a question about duture dilution and buybacks. Or; will TRW or CA do better in the future, and will Solomon continue to dilute or will he perform buybacks?