China Minzhong Food Corporation

[getrich]

what are the risks of this deal not going through?

Salim cannot vote so 12% OPMI could be dumb enough to vote against... I think not...

Specuvestor : any comment on the offer. strangely why do you think they are doing convertible option as open offer.

The exchangeable bond is to revert Indofood's position back to square one of about 30% stake.

But this statement is incredibly interesting:
"The CMZ Management Promissory Notes shall not be repayable by the Offeror until after the expiry of 18 months from the date of issue and provided that the Offeror has sufficient funds to repay the amount of principal outstanding under the CMZ Management Promissory Notes."

After Salim takes control of the CMZ under the Marvelous Glory entity, this entity will have to firstly pay the interest for the exchangeable bond and then end of 18 months pay S$38,620,320 to Lin and mgt. And Marvelous Glory cashflow derives purely from CMZ. So if there is no cashflow, they don't have to pay ie Lin will lose his 5% stake of $38,620,320, as well as the Earnest Sum of S$40m.

Basically if CMZ is fluke, Indofood redeems bond and strip Marvelous Glory of all cash, and Marvelous Glory can close shop without paying any promissory note. But net net Salim is still taking a risk here by doubling down a failed repo trade and privatizing it as he is paying cold hard cash for the 12% OPMI stake... maybe Weijian is right that he cares about reputation now? No one outside will be wiser 18 months down the road what happens then.

don't waste your time. these are incredibly savvy deal-makers and eagle-sharp businessmen. mere mortals like you wouldn't be able to decipher their machinations.

singapore needs more foreign talent like Anthoni Salim and Lin Guo Rong. they are world-class job creators and highly innovative entrepreneurs.