We can't be sure why SIAF wanted to distribute half. It could be a strategic move and it could also be desigend this way. If SIAF owns less... then the new investors in TRW will control MORE. Which means they have a better chance of getting new investors on board, pre-IPO.
If TRW can get the $100M loan then there is no need for big pre-IPO financing. And SIAF may prefer to own 36.6% instead of 18.3%. For now. It all depends.
The other thing is, they had to settle the A/R one way or another. Especially the receivables over 1 year old. If they settle all of it as they are doing now (the $53M) then it could free up cash flow for TRW. Which means they can proceed with more ODRAS projects. Which means income for CA.
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