Halcyon Agri agrees to buy Singapore-based rubber distributor

SINGAPORE - Halcyon Agri Corporation, a Singapore-listed producer of natural rubber, said on Wednesday it has agreed to buy New Continent Enterprises.

Halcyon Agri signed a memorandum of agreement to acquire the Singapore-based rubber distributor and dealer, it said.

It will pay about US$30 million (S$37 million), with the final amount to be determined based on New Continent as at July 31.

Mainboard-listed Halcyon Agri will make the payments in four equal quarterly instalments in cash or in new shares at prices ranging from 90 cents to $1.80 per share.

New Continent sold about 250,000 tonnes of natural rubber to more than 150 customers around the world last year. It operates across the whole rubber value chain, from sourcing raw materials to marketing, transporting, importing and exporting all leading grades of natural rubber.

"New Continent is a long established and globally renowned rubber distributor and dealer with an extensive customer base and powerful distribution network," said Halcyon Agri's executive chairman and chief executive Robert Meyer.

"It is highly complementary to Halcyon's business," he added, saying the acquisition would transform the company's marketing and distribution capabilities.