China Minzhong Food Corporation

(14-02-2014, 04:58 PM)minimax Wrote:

(14-02-2014, 04:51 PM)morten Wrote:

(14-02-2014, 04:48 PM)minimax Wrote:

(14-02-2014, 04:44 PM)desmondxyz Wrote: Another eratat.....

why do you say that?

It doesn't make sense for China Minzhong to fake cash balances now that it's Indofood's subsidiary.

Before stashing that $500milion to GO Minzhong, I suppose the Indonesian side would ve done a proper DD. That is a reasonable assumption.

What nonsense are you talking about? Indofood never had any access to CMZ's internal documents before they make the GO.

They rely solely on CMZ's audited FS to make the GO.

There's no way indofood would go into this just relying on publicly available fs. They r not retail investors like us. Their main advert over us is that they can afford to pay for due diligence services, but whether dd actions will uncover all fraud is hard to say. It's afterall just a dd. not a 100 perc dd.

(14-02-2014, 05:04 PM)Wildreamz Wrote:

Quote:What nonsense are you talking about? Indofood never had any access to CMZ's internal documents before they make the GO.

They rely solely on CMZ's audited FS to make the GO.

Quote:Confidence in CMFC

Indofood has taken all necessary steps to ensure that its investment in CMFC is prudent, including the conduct of due diligence
prior to its initial investment in February 2013. Indofood is confident that the due diligence that it conducted was sufficient to
provide comfort over its investment.

Following the allegations, till date, the auditors of CMFC have not withdrawn any of its audit opinion on CMFC’s past audited
financials.

In response to the recent allegations made against CMFC, Indofood has noted the detailed point-by-point rebuttals of the
allegations, released by CMFC on SGX on 1 September 2013 and 3 September 2013, where it has specifically addressed the
allegations in detail and has provided substantiation of facts. Indofood is satisfied with CMFC’s rebuttals of the allegations and
finds the rebuttals to be consistent with Indofood’s due diligence findings and analysis.

Despite the allegations, CMFC has remained transparent and open in their communication with the investor public, with clear
analysis and discussion of their operating performance in their results announcement even as it strives to prepare the first
rebuttal under intense time pressure. This is in line with Indofood’s policy of making timely disclosures to the investor public and
also indicative of CMFC and its management’s ability to operate and thrive under adverse conditions.

It is clear that the intention of the recent allegations is to benefit from the decline in CMFC’s share price as the issuer of the
malicious report has stated clearly that they maintain a short-sell in CMFC.

http://infopub.sgx.com/FileOpen/Press_Re...eID=255109

As far as I know, Indofood never stated in detail what does their due deligence comprises (site visits, internal audit, 3rd party valuator etc)

I don't think it is fair to make assumptions like that.

A GO due diligence has a very specific meaning. It means that the target firm open up its books to the buyer for inspection.

(14-02-2014, 05:12 PM)kikababoo Wrote:

(14-02-2014, 04:58 PM)minimax Wrote:

(14-02-2014, 04:51 PM)morten Wrote:

(14-02-2014, 04:48 PM)minimax Wrote:

(14-02-2014, 04:44 PM)desmondxyz Wrote: Another eratat.....

why do you say that?

It doesn't make sense for China Minzhong to fake cash balances now that it's Indofood's subsidiary.

Before stashing that $500milion to GO Minzhong, I suppose the Indonesian side would ve done a proper DD. That is a reasonable assumption.

What nonsense are you talking about? Indofood never had any access to CMZ's internal documents before they make the GO.

They rely solely on CMZ's audited FS to make the GO.

There's no way indofood would go into this just relying on publicly available fs. They r not retail investors like us. Their main advert over us is that they can afford to pay for due diligence services, but whether dd actions will uncover all fraud is hard to say. It's afterall just a dd. not a 100 perc dd.

What nonsense are you talking about?

Did Indofood engage a Big 4 audit firm to go through CMZ's book?
A GO due diligence has a very specific meaning. It means that the target firm open up its books to the buyer for inspection.

(14-02-2014, 05:15 PM)minimax Wrote: What nonsense are you talking about?

Did Indofood engage a Big 4 audit firm to go through CMZ's book?
A GO due diligence has a very specific meaning. It means that the target firm open up its books to the buyer for inspection.

I think that is not important right now. We are just trying to make the point that Indofood has done their due diligence one way or another. Whether it is before or after the GO, it is not relavent to us now.

That said, I don't think I can say for certain that Indofood has never engaged a Big 4 Audit firm to go through CMZ's book. There is just no information on what kind of due diligence they have done.

However, usually, private equity acquisition goes through a very thorough due diligence process.

(14-02-2014, 05:25 PM)Wildreamz Wrote:

(14-02-2014, 05:15 PM)minimax Wrote: What nonsense are you talking about?

Did Indofood engage a Big 4 audit firm to go through CMZ's book?
A GO due diligence has a very specific meaning. It means that the target firm open up its books to the buyer for inspection.

I think that is not important right now. We are just trying to make the point that Indofood has done their due diligence one way or another. Whether it is before or after the GO, it is not relavent to us now.

That said, I don't think I can say for certain that Indofood has never engaged a Big 4 Audit firm to go through CMZ's book. There is just no information on what kind of due diligence they have done.

However, usually, private equity acquisition goes through a very thorough due diligence process.

If you don't know whether Indofood did do a financial due diliegence on CMZ, then why are you pretending that you had the knowledge?

[quote='minimax' pid='74207'
What nonsense are you talking about? Indofood never had any access to CMZ's internal documents before they make the GO.

They rely solely on CMZ's audited FS to make the GO.
[/quote]

Relax fellow forumer. If u think u r correct, u are correct.

Please refrain from using abusive words e.g. nonsense. It will not help in anyway to add value for a fruitful discussion.

Assuming none of you were insiders. If I am correct, there are just views/speculation/guesstimate from each individual, base on experiences and exposures. Let's respect each other's view, and agree on the disagreement if any

Thanks

Regards
Moderator

(14-02-2014, 05:12 PM)kikababoo Wrote:

(14-02-2014, 04:58 PM)minimax Wrote:

(14-02-2014, 04:51 PM)morten Wrote:

(14-02-2014, 04:48 PM)minimax Wrote:

(14-02-2014, 04:44 PM)desmondxyz Wrote: Another eratat.....

why do you say that?

It doesn't make sense for China Minzhong to fake cash balances now that it's Indofood's subsidiary.

Before stashing that $500milion to GO Minzhong, I suppose the Indonesian side would ve done a proper DD. That is a reasonable assumption.

What nonsense are you talking about? Indofood never had any access to CMZ's internal documents before they make the GO.

They rely solely on CMZ's audited FS to make the GO.

There's no way indofood would go into this just relying on publicly available fs. They r not retail investors like us. Their main advert over us is that they can afford to pay for due diligence services, but whether dd actions will uncover all fraud is hard to say. It's afterall just a dd. not a 100 perc dd.

Precisely.
actually I think its quite insulting to Salim to believe Indo didnt do any form of dd before putting the first cent on Minz. Quite likely they did the dd even before they bought the stake from GIC.... and not wait until they reach the GO stage.

The only qn is to what extent or details did Infofood do their due d. Could be a deep or thorough one, or a superficial &simple one.

China stocks come with accounting frauds and hidden debts. Although fundamentally food prices will rise due to the lack of farmers, i cannot trust China stocks due to a string of poor historical performances despite its good earnings.

With references from Dukang Distillers. Luckily managed to sell it at a higher price.

With the lack of consistent performances of China stocks, i am determined to stay away from them.

(14-02-2014, 05:33 PM)CityFarmer Wrote: Please refrain from using abusive words e.g. nonsense. It will not help in anyway to add value for a fruitful discussion.

Assuming none of you were insiders. If I am correct, there are just views/speculation/guesstimate from each individual, base on experiences and exposures. Let's respect each other's view, and agree on the disagreement if any

Thanks

Regards
Moderator

Thank you for stepping in here.
Peace.