Replies to post #5213 on Sino Agro Food Inc (fka SIAF)

[treit2002]

I've thought that the flower division is the prime candidate to be spun out, because on any EBITDA multiple, it would bring in a huge chunk of change. Also, the business has been incubated; has reached a critical mass; yet, has plenty of growth left. In addition, SIAF could retain rights to market and distribute.

Problem is that the rains held back production significantly this year, so I wouldn't expect anything for another year.

Also, nothing along any spin off lines will happen before uplisting.

Also, probably prefer that the fish farm model is proven, and that contracts are in place for significant growth, so that earnings will be replaced and exceeded.

[Emilez]

How will they spin out these businesses? Will it be an IPO?

I guess the current shareholders will no longer own as much of these businesses after they've been spun out.

Why spin them out, why not keep them? They generate good cash that can be used. Maybe to get leverage for the most powerful business ideas (fishery?)..