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The Swede

10/03/13 7:15 PM

#46412 RE: Vilgot #46411

Yes, we have more then 45%, but not officially. If some one wants to us a the lower number to be safe, go ahead.

Form the Stockholm meeting -

23:13
Hey Solomon, since I heare that you have plans IPO a beef subsidiary, can you explain how does the ownership for your cattle farm division and how do you expect it to look like after the IPO, what is the expected size of the market category for this offering?

It is still very long way away. Because it will happen in 2015. But we want to include the 2014 figures in to there to get a fair valuation for 2015. But on a preliminary basis at the moment, two things, after the IPO we are planning that SIAF will not lose control of that company, we stil maintaining as it’s mother company. And the spin off, the most we will spin off is 33% of the company, and the valuation as I pointed out before, it looks very likely that it will be on the earning of the 2014 for the last 6 years in a row. I reckon we will get about 16 times earnings. But to put it very mildly as put on the conference call before, we are expecting the beef business this year we will do about $50 million on revenue, but when we finish the abattoir and the deboning activity and so on the we target to turn in to $200 million in sales for the 2014. So the 2014 is a very critical issue for the valuation of the cattle farm.

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viking86

10/03/13 7:22 PM

#46413 RE: Vilgot #46411

no, Vilgot. What he meant is he intends to spin off max 33% of SJAP as a business. Doesn't mean that we will get 100% of the IPO proceeds from that spinoff. It depends how much of the business we own to start with. If we officially own (per all filings to SEC) 45% of SJAP then we will get 33% x 45% x valuation if 33% of SJAP is spun off IMO. In latter case we still own 45% of the remaining (=67%) part of SJAP.
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RealDutch

10/03/13 7:25 PM

#46414 RE: Vilgot #46411

Vilgot, you can't use $200M in revenue and 40% margin. First of all, $200M is not achievable, and second, you are double counting revenues. You can use $9,000 in revenue per head, or even 11,000, but then you have to use 15% margin.

So my estimate calls for $140M in revenue and 15% margin.
=> net profit = $21M
21 x P/E 16 = $336M
=> dividend = 336 x 0.45 x 0.33 x 0.5 / 130 = $0.19/share