Replies to post #147136 on Sino Agro Food Inc (fka SIAF)

[ks1977]

Since TRW is using stock ownership to pay $62,338,065 owed to SIAF, does that mean that the Company will still retain a complete 36.6% TRW ownership after the distribution?

No. From the 10-Q Q2/18 page 14-15 we have;

The accounts receivable of CA’s C&S services totals US$53,460,749 made up of $982,223 (0 – 30 days), $9,188,981 (over 90-days & less than one-year), and $43,289,545 (over one year).

$43,289,545 is to be settled by Tri-way’s shares included in the 36.6% equity shares that the Company received from the “Carve-out” exercise as discussed in the Company’s 2017 10K filing.

This has been the plan all along. However, the way they need to do this to avoid a tax burden on SIAF is different than what they planned in the past.

There is a speculation that TRW might convert more of its debt and that SIAF will retain its 36.6% even post the 18.3%-distribution, but SIAF has been saying that they plan on distributing half of their 36.6% stake ever since they acquired that stake. The speculation isn't totally unreasonable (especially if SIAF/TRW isn't able to reverse the 36.6% in such a way that SIAF is unable to avoid the tax burden of the 36.6% they already have), but we don't have any indications so far except for a strange wording in the TRW-announcement.