Sino Grandness

[portuser]

Unless I am missing something, the convertible bonds in principle work like
IPO happens: up to 49.9% of Garden Fresh is "lost" to the bonds converted
IPO doesn't happen: worst case scenario a payment of roughly 4 times the current carrying value of the bonds is payable. I dont see any way for them to fund that than through issuance of more debt, and if they cant raise it then who knows what will happen.
There is certainly an element of risk to this, but at the moment it is more of a 'what if' than something thats actually happening

Dilution
Sino Grandness is unlikely to forgo 49.9% of Garden Fresh.
The extent of dilution depends on Garden Fresh' profit in 2013.
If the profit exceeds RMB 250m, Garden Fresh will be valued at 6 times of RMB 250m, or RMB 1,500m, and bondholders will have a 24.7% stake in Garden Fresh for their RMB 370m bonds.
A lower 2013 profit but exceeding RMB 200m will result in Garden Fresh being valued at 5.5 times. For example, a 2013 profit of RMB 200m will result in a valuation of RMB 1,100m; and the bondholders will have 33.6% stake in Garden Fresh.
If Garden Fresh ends up with a 2013 profit lower than RMB 200m, valuation will be 5 times.
Garden Fresh' 2012 profit was RMB 167m on sales of RMB 873m. With indicative new orders amounting to RMB 290m received during the Chengdu Trade Fair in Mar 2013 and higher in-house production that fetches better margin, 2013 profit is likely to exceed RMB 200m.
Probable dilution therefore should be between 24.7% and 33.6%. A dilution as high as 49.9% seems unlikely.

Redemption penalty
The penalty that Garden Fresh faces is not four times the value of the bonds.
The worst case will result in Garden Fresh redeeming the bonds 73% higher than face value when no effort is made on its listing.
If the listing fails despite effort being made, the redemption will be 52% higher. than face value.
Redemption will be in two stages.
The first redemption of RMB 152m takes place in Sep 2014 for the RMB 100m bonds issued to Sun Hung Kai.
As for the RMB 270m bonds issued to Goldman Sachs, redemption is RMB 411m in Oct 2015.
If Sino Grandness continues to do well, it may be able to redeem the bonds from profit, or from bank borrowings as it becomes more credit-worthy.

[Wildreamz]

http://info.sgx.com/webcoranncatth.nsf/V...A0082940C/$file/Sino_Grandness_PreClearance_Announcement_1.pdf?openelement

...

PROPOSED LISTING OF THE BEVERAGE BUSINESS SEGMENT OF SINO GRANDNESS FOOD INDUSTRY GROUP LTD ON AN INTERNATIONALLY RECOGNISED STOCK EXCHANGE WITH AN ACCOMPANYING IPO

...

The Board of Directors wishes to remind shareholders that there is no assurance or certainty that the Proposed Listing will materialise. Subject to applicable regulatory requirements, the Company will keep shareholders updated on material developments as and when appropriate.

In the meantime, Shareholders and other investors are advised to exercise caution when dealing or trading in the Shares of the Company. Shareholders and other investors should consult professional advisers if they have any doubt about the actions they should take.

(vested)

[felixleong]

http://www.todayonline.com/business/sino...e-business

SINGAPORE -- Sino Grandness Food Industry Group said Monday it plans to spin off its beverage business unit and list it on an international stock exchange.

Sino Grandness, which sells canned agricultural products such as sweet corn, peaches and mandarin oranges, said it has received a “no-objection” certificate from the Singapore Exchange for the international listing.

It did not provide a timing or size of the planned initial public offering.

---

up 11% today, fierce

[BlueKelah]

http://www.todayonline.com/business/sino...e-business

SINGAPORE -- Sino Grandness Food Industry Group said Monday it plans to spin off its beverage business unit and list it on an international stock exchange.

Sino Grandness, which sells canned agricultural products such as sweet corn, peaches and mandarin oranges, said it has received a “no-objection” certificate from the Singapore Exchange for the international listing.

It did not provide a timing or size of the planned initial public offering.

---

up 11% today, fierce

S-CHip up is always fierce

Down also very fierce

[Wildreamz]

http://info.sgx.com/webcoranncatth.nsf/V...E0029E2D0/$file/Sino_Grandness_Change_of_Legal_Representative.pdf?openelement

CHANGE OF LEGAL REPRESENTATIVE FOR A SUBSIDIARY IN THE PEOPLE’S REPUBLIC OF CHINA

Red Flag? Good news?

Seems like a neutral news to me. Both are long time insiders of the company as far as I can tell.

[felixleong]

Mr Shi has resigned from the Group


doesnt look good for sure, especially when they going into the IPO

[lvpierre]

http://video.xin.msn.com/watch/video/spe...%257c%257c

[Wildreamz]

http://video.xin.msn.com/watch/video/spe...%257c%257c

I was wondering why the slight gap up today. Good find, thanks!

(vested)

[kbl]

MAYBANK KE - 26 AUG 2013

Trading calls here - http://singaporetradinginsights.blogspot.sg/

China Minzhong: ($0.53) Shares plunge 50% on short seller report alleging fraud

Shares of China Minzhong slumped 48% to $0.53 on high volume, after short-seller, Glaucus Research Group recommended a Strong Sell on the stock.

Glaucus believes that Minzhong resembles HK-listed Chao Modern Agriculture, another Fujian-based vegetable producer which shares have been halted since Sep ’11 under widespread allegations of fraud. The short-seller says that Minzhong has “so significantly deceived regulators”, and inflated the scale of its business and its financial performance, that it expects trading in Minzhong’s shares to be halted and the “shares to be worthless”.

Glaucus has received much investor attention of late, particularly after its successful and high-profile unraveling of HK-listed China Metal Recycling as a fraud case. The stock has since been suspended, and the company Chairman investigated for alleged false accounting.

The market’s response to past short-seller reports by names with successful track record (eg. Muddy Waters), has been to “sell the stock first, and ask questions later”. As such, we remove China Minzhong from our Value portfolio, and close the position with a 47% loss.

This event may trigger spill-over negative sentiment and investor suspicion on other S-Chips. In particular, we highlight risk in China Minzhong’s peer, Sino Grandness ($1.32), a Chinese canned food and juice maker. We remove the latter from our Growth portfolio.

<not vested>

[propertyinvestor]

http://info.sgx.com/webcoranncatth.nsf/V...A0082940C/$file/Sino_Grandness_PreClearance_Announcement_1.pdf?openelement

...

PROPOSED LISTING OF THE BEVERAGE BUSINESS SEGMENT OF SINO GRANDNESS FOOD INDUSTRY GROUP LTD ON AN INTERNATIONALLY RECOGNISED STOCK EXCHANGE WITH AN ACCOMPANYING IPO

...

The Board of Directors wishes to remind shareholders that there is no assurance or certainty that the Proposed Listing will materialise. Subject to applicable regulatory requirements, the Company will keep shareholders updated on material developments as and when appropriate.

In the meantime, Shareholders and other investors are advised to exercise caution when dealing or trading in the Shares of the Company. Shareholders and other investors should consult professional advisers if they have any doubt about the actions they should take.

(vested)

WOw, you really love China stocks