Halcyon Agri gets mandatory conditional offer at 41.3 cents per share
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A Halcyon Agri rubber processing factory in Palembang, Indonesia.
PHOTO: HALCYON AGRI
SINGAPORE – China Hainan Rubber Industry Group said on Friday that its wholly owned subsidiary will be making a mandatory conditional cash offer for Halcyon Agri with an offer price of 41.3 cents per share.
The announcement follows the closing of an earlier acquisition, whereby 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, of Halcyon Agri at 31.5 US cents apiece from substantial shareholder Sinochem International (Overseas), or SIO.
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 41.3 cents per share offer price is the Singapore dollar equivalent of the 31.5 US cents based on the exchange rate of US$1 to S$1.3113 on Friday.
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.
SIO – 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 will become entitled to the right of compulsory acquisition, given SIO’s irrevocable undertaking to reject the offer.
Separately, Halcyon Agri’s board said it has appointed Xander Capital as the independent financial adviser with regard to the offer.
Halcyon Agri shares last traded at 40.5 cents before a trading halt was called on Thursday. THE BUSINESS TIMES
