Halcyon Agri, Sinochem to proceed with rubber assets merger

HALCYON Agri said the pre-conditions to a proposed merger of its rubber assets with that of Sinochem have been fulfilled.

Sinochem will next make a mandatory general offer on July 15 to acquire all the issued and paid-up ordinary shares in the Halcyon Agri in accordance to the terms of the multi-part merger.

The multi-part merger called on Sinochem to acquire a 30.07 per cent stake in Halcyon Agri for 75 Singapore cents a share in cash. Sinochem is also obliged to make a mandatory general offer to all Halcyon's shareholders at the same price.

Halcyon is in turn obliged to extend an offer to acquire GMG Global, also a Singapore-listed firm in which Sinochem holds a 51.1 per cent stake - through a share swap of of 0.9333 Halcyon share for each GMG Global share.

Halcyon is also set to acquire Sinochem's rubber processing assets in China and Malaysia and the latter's trading business.

The proposed merger in combining Halcyon and Sinochem's rubber assets will create the world's largest rubber supply chain manager.

Halcyon will remain listed after the transactions, which are expected to be completed this quarter.