My first...

My first post

www.bloomberg.com/news/2014-05-06/china-property-slump-adds-danger-to-local-finances.html

"The value of land sales in third-tier cities declined 27 percent last month, according to SouFun Holdings Ltd., the nation’s biggest real-estate website owner."

27% decline in a month.

"Failure to find other revenue sources increases the risk of defaults and financial turmoil that curb economic expansion already projected this year at the slowest pace since 1990".

This is undisputed property data in China. Regardless if SPV success or fail, this property bust in China will have massive impact on iron ore price in coming years (mainly 2015-16). Further more production of iron ore coming online soon.

My point about SPV is... (have a think)

21.8% of SPV valued at $2m, so SPV valued at $9m.

If entire SPV only valued at $2m (78% less), then essentially TFA got FWL shares for $0.000c because TFA gets to keep the rest of SPV (78.2%) for FREE and increased holding in FWL to 60% with $0.000 to avg down.

Further, since they officially subscribed shares for 1.8c if they sell lower than 1.8c they can claim for capital loss. Then finding way to avoid capital gain (in China) of selling 21.8% of SPV to FWL.

By inflating TFA's asset and sell to FWL looks better than asking for discount share subscription. Like a retail store, inflating price first than give customers some "discounts".

Mmmm... Brett's window dressing has some similarities.

Just watch out for iron ore price and housing bubble in China. The independent valuer is how independent??? There are a lot of tricks in China to get independent valuer to write whatever the value.

Just IMHO.