Sino Agro Food Inc (fka SIAF)

[treit2002]

Pretty sure the 50% figure for a dividend or distribution has nothing to do with earnings from SIAF or its subs.

It refers to the cash SIAF receives from the IPO spin out. In the example Solomon gave, SIAF would spin out 30% of a subsidiary he guessed would be valued at $250M. That means SIAF would receive 30% of $250M in cash, or $75M.

50% of that, or $37.5M would be distributed to the shareholders, probably as part of a dividend.

Meanwhile, the parent company retains the other $37.5M in cash and 70% equity interest in the freely trading spun out company.

If there are 82M shares when this happens, the value to SIAF shareholders should be $3.05 per share, $.46 of which would be in the form of a distribution or dividend.