Replies to post #104597 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

Note the quote below, from the FY 2015 CC

And in addition to that, over a period of time, even after if there is a decision made to buy off a portion of their share, what have you, they will always maintain and this is going with any Chinese business partner any joint venture partnership we're talking about, there will always be a maintenance of at least 25% ownership by the Chinese business partners. So from that now we are talking about then extracting, I'm not going to go into details on this, but we're talking that at that point taking shares of Tri-way, HK and having some of those distributed to our current Sino Agro Food shareholders.

In addition to that Sino Agro Food will retain a minority position as again going back to what we said it will become, it is going to become a true and I put quotation marks around the word true holding company. So it will hold a minority interest in the aquaculture in the HU Plantation and SJAP, et cetera.

Now this whole thing, this transition is a lengthy process, but depending again on funding can be expedited in some areas and hopefully we can have possibly two these carve outs taking hold yet this year. But I'd put that out there only because I say if we have the funding in place to make it work today it can be made to work within that timeframe.

Apparently they do plan to distribute shares to SIAF shareholders. Although I would say, maybe not in SJAP's case.

There could be tax reasons for it. But I think they are also doing it because there is no guarantee that the value of the new company will be reflected in the stock of SIAF.

Anyone owning stock in Norway (or even China) can ask his broker to sell it for him. You just can't buy it through your broker.

Also note in the quote above that SIAF will end up with a minority stake in Aqua as well. I'm not sure this is a good idea. But we may still get 100% revenues from CA resale at roughly 13% gross margin. I'm not sure whether they will spin off that part, now, with the CTM deal abandoned.

When do you think is the most appropriate time to buy in to the desired stake in the MF? F.e. if Siaf spin SJAP and could have a boatload of money from there? It doesn't seems like an asap option to fulfil for you, which I do not fully understand, if so....?

First the MF has to ramp up and show it's profitable. I think they will use money from the aqua spin-off to buy into the MF, roughly at the same time or shortly after. They can't raise enough cash from the SJAP spin-off.

The loans they are getting now will take care of the $7M needed for PF3, $10M deposit for PF4, some SJAP funding as well. And then maybe, this time, Solomon won't be needing more money. LOL.

The other thing is, I think they are making arrangements already, about who is buying into the spin-off, for what price etc. And they are struggling, how much of this they can disclose. But first they have to get the loan and sign the deal with the contractor. Which will happen this month. And then we'll have to see what happens next.