SIAF Carve-Out Spin-Off Strategy

Sino Agro Food has undertaken a strategic initiative to restructure its main businesses into standalone companies; then to carve-out and spin off those businesses (“COSO”).

Many benefits accrue, as these standalone businesses are/will be better structured to raise capital and to operate as focused, single purpose businesses. Sino Agro will retain significant equity stakes in these businesses, after distributing shares as a dividend to SIAF shareholders. As the COSO strategy materializes, SIAF, the parent Company, anticipates improved cash flow, as it will no longer be responsible for capital development.

The Company firmly believes that the sum of its parts is worth considerably more than the market’s value of the whole. Accordingly, these carved out enterprises will seek initial public offerings on established Asian stock exchanges to gain value within the same financial measures afforded peer group companies.

Step-wise progress in the process is designed to reflect increasing valuations through newly certified asset appraisals, imputed value from debt and pre-IPO investment tranches, toward peer group pricing and liquidity post IPO.

The following document, presented in conjunction with Sino Agro Food, Inc.'s Q1 2017 Conference Call, explains the COSO strategy. Below is an updated version, with minor edits.



An earlier FAQ covering SIAF’s COSO plans is also available.