Sinochem, Halcyon Agri create biggest natural rubber house

Sinochem, Halcyon Agri to create biggest natural rubber house

6:58 AM, 30th March 2016
Sinochem, Halcyon Agri to create biggest natural rubber house

SINGAPORE: Sinochem International Corp, a unit of Sinochem Corporation has agreed with Halcyon Agri Corp Limited (Singapore) to buy a majority stake, combine their rubber assets and create the world’s largest leading natural rubber supply chain manager.

The deals are expected to be completed by the end of the third quarter of 2016.

The businesses will be combined under Halcyon Agri, which will continue to be listed on the Singapore Exchange Limited (SGX).

Sinochem said in a statement that it has offered to acquire a 30.07 percent stake in Halcyon Agri for S$0.75 a share. The all-cash deal will be worth at least S$240 million ($175 million).

Subsequently, Halcyon will acquire Singapore-based natural rubber producer GMG Global Ltd in which Sinochem International has a 51 percent stake - at an exchange ratio of 0.9333 Halcyon share for each GMG Global share.

Halcyon Agri will also buy Sinochem’s natural rubber processing assets in China and Malaysia and trading businesses, the companies said in a joint statement.

After the completion of the transactions, Sinochem will become the majority shareholder of Halcyon Agri, which will be the holding company of the expanded group.

The companies said the deal would create the world’s largest natural rubber supply chain manager with combined revenue exceeding $2.3 billion.

Australia and New Zealand Banking Group Limited, Singapore Branch is the financial advisor and Rajah & Tann Singapore LLP is the legal advisor to Sinochem International.

Deutsche Bank AG, Singapore Branch is the financial advisor, TSMP Law Corporation is the legal advisor and PrimePartners Corporate Finance is the compliance advisor to Halcyon Agri.

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