Sinochem Intl, Halcyon Agri to create biggest natural rubber supply chain manager

Halcyon Agri

28/03/2016 03:21

SINGAPORE, March 28 (Reuters) - A unit of Chinese oil and 
chemicals conglomerate Sinochem Group offered to buy a majority 
stake in Singapore's Halcyon Agri Corp  HALC.SI  in a deal that 
will combine their rubber assets and create the world's largest 
natural rubber supply chain manager.  
    Sinochem International Corp  600500.SS  said late Sunday 
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).  urn:newsml:reuters.com:*:nL3N16Z06T 
    Sinochem International will also make a mandatory general 
offer at the same price to all Halcyon shareholders. 
    Subsequently, Halcyon will make an offer for Singapore-based 
natural rubber producer GMG Global Ltd  GMGG.SI  - 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 on Monday.  
    After the transactions are complete, Sinochem will become 
the majority shareholder of Halcyon Agri, which will be the 
holding company of the expanded group.  
    The deals are expected to be completed by the end of the 
third quarter of 2016.    
    The companies said the deal would create the world's largest 
natural rubber supply chain manager with combined revenue 
exceeding $2.3 billion.  
    The companies said in January that they had been in talks 
over the potential deal.  urn:newsml:reuters.com:*:nL3N14Z2UU 
    Trading was halted in shares of Halcyon, which has a market 
value of $320 million, and in GMG, valued at $345 million.  
    Halcyon, which requested on Monday for the trading halt to 
lifted, last traded at S$0.73, while GMG was at S$0.615. 
($1 = 1.3721 Singapore dollars) 
 
 (Reporting by Aradhana Aravindan; Editing by Ryan Woo) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: HAC M&A/SINOCHEM INTL