CHINA Hainan Rubber Industry Group said on Friday (Feb 3) that its wholly-owned subsidiary will be making a mandatory conditional cash offer for Halcyon Agri Corporation with an offer price of S$0.413 per share.

The announcement follows the closing of an earlier acquisition, where the Chinese rubber producer acquired 36 per cent of Halcyon Agri’s shares, which would trigger a mandatory conditional cash offer for all the shares in the Singapore-listed company.

Last November, Shanghai Stock Exchange-listed China Hainan Rubber said it was acquiring 36 per cent, or 574.2 million shares in Halcyon Agri at US$0.315 apiece, from substantial shareholder Sinochem International (Overseas).

The closing of the acquisition took place on Friday. As a result of the share acquisition, the mandatory conditional cash offer is being made in compliance with the requirements of the Singapore Code on Takeovers and Mergers.

The S$0.413 per share offer price is the Singapore dollar equivalent to the US$0.315 based on the exchange rate of US$1:S$1.3113 on Friday.

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The offer is conditional upon the offeror receiving valid acceptances, which will result in the offeror and concert parties holding more than 50 per cent of Halcyon Agri shares at the close of the offer.

Sinochem International (Overseas) – which still holds a direct interest in around 29.2 per cent of Halcyon Agri’s shares following the closing of the November acquisition – has provided an irrevocable undertaking that it will reject the offer.

According to the bourse filing, the offeror does not intend for Halcyon Agri to be delisted and privatised following the close of the offer. It is also unlikely that the offeror would become entitled to the right of compulsory acquisition, given Sinochem’s irrevocable undertaking to reject the offer.

Separately, Halcyon Agri’s board said it has appointed Xander Capital as the independent financial adviser (IFA) to advise on the offer.

Halcyon Agri shares last traded at S$0.405, before a trading halt was called on Thursday.