Sino Grandness

Sino Grandness: Indirect wholly owned subsi Garden Fresh to issue zero coupon rate convertible bonds due 2014 with face value RMB100m. The subscription price will be 87% of principal amt excluding costs. Co will act as guarantor and Sun Hung Kai Invtment Services will act as placement agent. In the event of full conversion after issuance, co's stake in Garden Fresh will be diluted from 100% to 80.1%. Co has a current P/E of 3.2x