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.
Fair Value -> S$2.35, currently trading at S$1.14 (revised because of dilution)
