Chinese organic food maker Sino Agro is pushing ahead with plans to spin off and list its integrated cattle operations.
In an update on its progress yesterday (22 December), the company said that meetings with investment banks in Hong Kong have “strengthened” its view that “structural changes can unlock great shareholder value”.
“Interest has been strong,” Sino Agro said in a statement. “The company concludes that peer group multiples for similar companies listed on the Hong Kong stock exchange is very encouraging.”
Earlier this month, Sino Agro revealed plans to initiate a reverse split that will result in a proportionate decrease in the total number of shares but not in the total value of shares. Shareholders will maintain the same percentage equity in Sino Agro Food as before the split and the unit value of shares will be pushed up.
The company is working on a strategic plan in co-operation with Stockholm-based investment firm Euro China Capital.