Sino Grandness

Sino Grandness: Sino Grandness’ substantial Thai shareholder has begun accumulating more shares in the group, raising its stake from 13.008% to 13.075%, via the purchase of 447,700 shares at an average price of $0.375 through Soleado Holdings from the open market.

The Thai’s purchase comes as Sino Grandness’ nears the deadline for the maturity of its convertible bonds due over the next two months (2011 convertible bond maturity date @ 30 June 2015; 2012 convertible bond maturity date @ 30 July 2015).

Recall, if the group fails to IPO its beverage brand before Jul ’15, it would have to redeem its convertible bonds, for an amount totalling ~Rmb700m. Based on its 1QFY15 financials, Sino Grandness only has a cash balance worth Rmb419.9m, suggesting near-term liquidity risk.

Sino Grandness’ Thai investor holds stakes in Sino Gradness via Soleado Holding (9.303%) and PM Group (3.77%), with both entity belonging to the Mahagitsiri family in Thailand, which is well known for being a manufacturer and distributor of Nescafe products in Thailand.

Still, with the maturity date of its convertible bonds looming, and no fresh updates/news in relation to the group’s progress on a possible IPO, most investors are likely to remain side-lined as they await greater clarity from the company.