China Minzhong – Indofood buys 15%
It was announced on Friday that Indofood Sukses Makmur had bought a 15% stake in China Minzhong through a rights offering at a 10% discount to the last traded price. This will inject S$85m into China Minzhong, which will be used to expand the industrial farming operations.
While this is marginally dilutive, it doesn’t change my original hypothesis. I still believe that China Minzhong is a good investment at these levels.
I’ve revised my fair value target to S$1.44 because of the dilution.
Disclosure: This is not meant to be interpreted as financial advice. If you’re considering investing, please do your own due diligence.