EGM tomorrow morning ---> OK from shareholders means Sino Grandness can proceed with submission of application for IPO for Garden Fresh. Everyone knows the target place is Hong Kong Stock Exchange.
Good turnout for FY15 results briefing after market closed today.
Look out for agreement/settlement of convertible bond issue soon. This is necessary to pave the way for the filing of Garden Fresh's IPO in Hong Kong. The filing for an IPO is, from all appearances, a sure thing (barring unforeseen circumstances, of course). Then it's for the HK Stock Exchange to decide if Garden Fresh can indeed list there. To many investors, there is every reason for the IPO to materialise, especially since this is a highly profitable business, and unlock the value of Garden Fresh.
Great news! Convertible bond matter is now settled. Not only that, the bond holders have agreed to take a lower stake in Garden Fresh. (The shares are more valuable than cash actually)
Next thing is the submission of application to list Garden Fresh on HKSE.
Sino Grandness is pleased to update that the CBs extension agreements with CB1 and CB2 bondholders have been completed, with 40% of the CBs to be converted into debt and 60% of the CBs to be converted into shares in the event of completion of IPO.
The original CB1 and CB2 with total principal sum of RMB350.5m were supposed to account for 23.37% stake before IPO of Garden Fresh, with conversion valuation of RMB1.5b.
With the restructuring, only 60% of the principal sum of the CBs (with 12 months maturity) will have conversion rights with 5% premium given upon conversion based on previously agreed market cap of RMB1.5b. As such, the estimated stake before IPO for bondholders will be lower at approximately 14.72%, resulting in a smaller dilution by 8.65% for the Company.
The 40% of the CBs will be repaid as debt, of which 15% to be repaid within 3 months and the other 25% to be repaid within 12months.
For further information, please see attached announcement.
With the EGM passed recently to approve the spin-off and the completion of the CB extension for the beverage subsidiary, this will pave the way for company to proceed further with its proposed spin-off exercise for the beverage business. The company shall provide further update once there is material development relating to the proposed spin-off.
Share price is on a tear, hitting 50.5 cents this afternoon. To think it was bogged down at 30 cents just 2 months ago by fears over the IPO and 1,001 and other matters....Fair value is more than $1.00, imho. (Trade at yr own risk)
It's a good feeling to see that Sino Grandness has re-rated very well. At 66 cents, I am still holding. I hope the submission of the IPO application really materialises in the next few weeks or months, otherwise the credibility will erode.
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