Halcyon Agri shares soar after forced offer from Chinese rubber producer

SINGAPORE – China Hainan Rubber Industry Group, listed on the Shanghai Stock Exchange, will acquire 574.2 million shares of Halcyon Agri Corporation at 31.5 cents per share for consideration of US$180.9 million (SGD248.5 million). Get

This represents a 36% stake in Halcyon Agri and as the acquisition will bring China Hainan Rubber to more than 30% ownership of Halcyon Agri, for all shares in a company listed in Singapore. A mandatory conditional cash offer is triggered.

Shares of Halcyon Agri jumped on Thursday after the offer was announced. Up 9.5 cents, or 32.8%, to 38.5 cents at 11am.

The offer price of 31.5 US cents is 50.3% above Halcyon Agri’s final trading price of 29 Singapore cents on November 11, the last full trading day before the announcement.

It was also 73.3% higher than Halcyon Agri’s volume weighted average price (VWAP) for the month to 11 November and 78% higher than the VWAP for the three months.

China Hainan Rubber will make a formal offer after the purchase of Halcyon Agri’s 36% stake from Sinochem International is completed and certain prerequisites are met. business times