Sino Grandness

[Young Investor]

http://infopub.sgx.com/FileOpen/Sino%20G...eID=392256

So Boon, any comments ?

Hi crubs,
 
If I interpret it correctly, the Bondholders have decided to redeem 40% of their investments and leave the option (to convert or redeem) open for the remaining 60% stake. They may or may not convert eventually……….
 
Seems like the Bondholders are not that enthusiastic to participate in the upsides of an IPO. For whatever reasons, I am a bit surprised by that.
 
It is a piece of good news, nevertheless, in the sense that it clarifies the status of the CB.
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Hi Mr Boon


Garden Fresh is the main profit spinner of Sino and Specuvestor has put it nicely that "it benefits SinoG shareholders not to share their crown jewel." 

We now have an arrangement for Bondholders to own 14.7% of Garden Fresh, instead of the original 23.4%. 

The arrangement also eases cash flows because the 40% redemption will happen in 2 phases.

First, RMB 107m to be paid on 31 May 2016, and Second, RMB 179m to be paid 1 year from now. 

It is important to note that the second payment is to be based on 10% interest instead of 25% for 2011 Bonds and 20% for 2012 Bonds. Bondholders must like Garden Fresh very much to agree to the concessions.