This Maybank KE analyst report is a very good summary for sino grandness.
www.remisiers.org/cms_images/research/Ap...randness_0804131.pdf
If the bonds for sino grandness is converted to shares, the dilution can vary from 25% to 34% for the shareholders.
For eratat, if all the warrants are exercised, an addition of 82,500,000 shares increased the total share supply by 17% only, which is fixed. And, the proceeds from the warrant can also be used to offset the principal payment.
If the best scenario case for sino grandness is to have garden fresh listed, then the best case scenario for Eratat is to have its share price exceeded 25 cents and have all the warrants exercised.
overall, the deal structure will involve some areas of give and take (interest, discount to bonds, dilution if exercised/convert etc), regardless whether it is Eratat or Sino Grandness.
if u ask me, Sino grandness bond has too much uncertainty whereas Eratat bond issue is much more straightforward. And, mind u, 30%+ dilution is a lot...
The bank loans that sino grandness obtained are used for land acquisition and buiding of plant factory. There is an asset pledged, so banks are more willing to lend. But if u are borrowing money for expansion, who will lend u money if it doesn't invvolve an asset??? if open a factory, banks can still lend, cause if fail, banks take back the machine and land. Is there a bank that will lend u a loan to open a retail shop? do some common sense.
skeptic, u are just picking bones from eggs again. If u want to complain CEO Lin and the company never do sharebuyback, that I agree with your point. But do note that last year, Eratat did not obtained the sharebuyback mandate so insiders n company are not allowed to buy. But for this year, they have sought shareholders' approval for the buyback mandate. I do not know when or do not know if they really will do a sharebuyback but the CFO did say they will take the buyback mandate into consideration. so, don't make your conclusion so early about Eratat. This bond issue for Eratat is just the beginning of the beginning.
come on, i hv honestly admitted earlier that i did not spot the subscription price as it was a quick glance from my computer so i thought the bond was issued on par. whether ppl think i am credible or not is not decided by u. The forummers here will judge. I can't be bothered with u but if u do wish to criticise Eratat, please make some sensible remarks and stop stubbornly repeating the old complaints like why not bank loan, rights n blah blah.
so u wan to tell me that just because Sino Grandness bond can be converted to shares, hence it's a good deal while Eratat is a lousy deal? But hey, u factor in the share dilution or not? Despite all the various fund raising, why sino grandness only have RMB200+ mil RMB. all those money go to where but production lines, factory construction, buying of land etc. Go check sino grandness investing cashflow for the past quarterly and yearly basis. It's kinda scary. More than half of its 2012 net profit after tax goes into investing. No wonder sino CEO has to fork out money in himself. If Sino can be a gem, i don't see why not for Eratat in the future.