Halcyon Agri inks agreement to acquire two companies for S$105.3m

Halcyon Agri Corporation Limited has signed a conditional sale and purchase agreement to acquire PT Sumber Djantin and PT Sumber Alam.
Halcyon Agri Corporation Limited has signed a conditional sale and purchase agreement to acquire PT Sumber Djantin and PT Sumber Alam. PHOTO: HALCYON AGRI

SINGAPORE - Natural rubber supply chain manager Halcyon Agri Corporation Limited has signed a conditional sale and purchase agreement to acquire PT Sumber Djantin and PT Sumber Alam for S$105.3 million.

Upon completion, the acquisition will add four Standard Indonesian Rubber (SIR) factories, located in Pontianak, with a combined licensed annual capacity of 132,000 metric tonnes to Halcyon Agri's operations, the company said on Monday (Jan 15).

Collectively, the four factories are highly regarded producers of SIR and have a strong track record in delivering quality rubber to the global tyre majors.

Combined with the acquisition of PT Pulau Bintan Djaya, announced on Dec 8, 2017, Halcyon Agri will operate a total of 19 factories in Indonesia, up from 14 currently.

The acquisition of the five new factories will add a total of 192,000 metric tonnes to the group's annual processing capabilities, pushing the group's total annual processing capacity in Indonesia to 877,000 metric tonnes, propelling the group to become the single largest producer of SIR globally.

Completion of the proposed acquisition is conditional upon the fulfilment, or waiver, of the conditions precedent, and shall take place on or before March 31, 2018.