INVESTORS sceptical of the Chearavanont family's injection of agriculture assets into CP Pokphand should take another look at the company's growth.
With the US$37 million acquisition of 16 companies in China, the last batch of agri-assets injected by the family, CP Pokphand has grown to a size to allow it to go it alone for future expansion.
It will no longer rely on the Chearavanont family, its major shareholder, to expand its agri-business interests in China.
Thus, concerns about further dilution of earnings per share by way of new issues for acquisitions are removed, at least in the foreseeable future.
The group's executive vice-president Tony Asvaintra made it clear that it did not like to see its earnings per share diluted by way of new issues.
That's why the company has rejected the idea of raising funds through the issue of convertible bonds, which he said would ultimately dilute earnings upon the conversion of the bonds.
Instead, it prefers to arrange straight bonds for future expansion if necessary.