Replies to post #8297 on Sino Agro Food Inc (fka SIAF)

[treit2002]

Hyperboy,

I think they've talked about spinning out some or all of the subsidiaries to an Asian exchange.

Here's how I understand it:

They might issue 25% of the outstanding shares of a new spun out company; say, the fish contracting and sales business. In that case SIAF the holding company would be valued differently. It would lose the current embedded value of the fish business, but gain the value of the newly public shares, 25% of which would be cash.

The whole idea is that the subsidiaries would be valued at normal metrics, undiscounted by the perceptions of US listed Chinese pink sheets or bulletin board shares.

If the fish business were making even $.25 per share on SIAF's 70M shares in 2013, it could easily be valued at 10x or $2.50/share.

I'm curious about the reported rumor on the Sweden boards that the Green and Natural brand might seek a listing in Stockholm in the near future. I'm not sure how you can go to the public markets with such a small revenue business/ideas.