Halcyon Agri completes purchase of 4 Indonesian rubber factories for lowered S$86.8m

MAINBOARD-LISTED Halcyon Agri Corporation has completed the acquisition of four Indonesian rubber factories for S$86.75 million, lower than the initially indicated S$105.3 million.

On Monday, the natural rubber supplier said that the amount had been adjusted. Under terms disclosed in previous announcements in December and January, the company had said that the purchase price was subject to due diligence findings.

The deal came out of a memorandum of understanding in December between Halcyon Agri and vendors Liauw Chiang Sioe and Sjahrir Iskandar to buy the entire stake in PT Sumber Djantin (PTSD) and PT Sumber Alam (PTSA). The targets own four crumb rubber factories in West Kalimantan, Indonesia.

PTSD and PTSA are now indirectly wholly owned subsidiaries of Halcyon Agri.

If the acquisition had been completed at end-fiscal 2017, the company's net asset value as at Dec 31, 2017 would have been US$662.6 million instead of US$637.4 million. The adjusted net tangible asset per share would have been 41.54 US cents, or 55.25 Singapore cents, instead of 39.96 US cents, or 53.15 Singapore cents.

Halcyon Agri last traded at S$0.57 on April 19.