Replies to post #146752 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

It's like they are trying to do things in reverse.

I think that's the right way to look at it.

When SIAF acquired the first 23.89% stake in TRW in Q4/2016 they booked a $58M gain. Then the remaining 12.71% was acquired in Q4/2017 in exchange for debt reduction.

So any time they distribute TRW shares to shareholders, they have to pay tax on the $58M, or part of it. I think that's how it works.

Not the way they are doing it now. Also keep in mind that SIAF may decide to retain 36.6% but that depends on willingness of the partners. In which case the debt will not go up by $62.3M. That would be perfect for us, but requires making sacrifices by the partners... (who in principle don't want to sell shares for $3.40). All subject to negotiation. That's why the Q3 report could be interesting this time.