In recent years, the continued sluggish price of rubber is causing an accelerated integration and reshuffling of the natural rubber industry.

As an industry leader, Sinochem International now wants to further expand and strengthen the natural rubber industry through the acquisition of Halcyon, and is expected to become the world's largest natural rubber supplier after the acquisition and integration.

Sinochem International or the world's natural rubber boss
Sinochem International or the world's natural rubber boss

After the suspension of trading, the plan for asset acquisition and integration planned by Sinochem International was finally released. According to the contents of the announcement, Sinochem International's integrated operation of its natural rubber segment is divided into three major parts.

First of all, Sinochem International’s wholly-owned subsidiary Sinochem New plans to use a consideration of S$0.75 per share to conditionally acquire 30.07% of the shares held by the five major shareholders of Halcyon Corporation in cash and will trigger the ownership of Halcyon. Forced full tender offer of issued shares.

After the above acquisition was completed, Sinochem’s shareholding in Halcyon was not less than 53.98%.

Secondly, after the completion of the cash purchase, Halcyon plans to issue new shares, through a voluntary comprehensive tender offer, to convert the shares of GMC (Sinochem New Holdings) 1 share for Halcyon 0.9333 shares to GMG. , And then the acquisition of most of the shares of GMG.

After the acquisition is completed, GMG may withdraw from the market.

In the end, Sinochem International also installed its natural rubber processing and marketing business other than GMG Company into the newly established SPV company.

After the above conversion is completed, Halcyon will also issue new shares, that is, 280 million shares of Halcyon's common stock will be considered for the purchase of the SPV company.

After completion of all the above transactions, Sinochem International's share of Halcyon's equity is not less than 60%.

Sinochem International stated that Halcyon possesses high-quality natural rubber processing resources. Through this acquisition, it not only achieves industrial integration but also complements each other's advantages, and enhances the company's influence on the industry's upstream and downstream industries as well as market discourse.

At the same time, through this acquisition and integration, Sinochem International will also become the world's largest natural rubber supplier. The company's integrated sales network will have a sales capacity of approximately 2 million tons of natural rubber and latex, and its operating revenue will exceed 23%. One hundred million U.S. dollars.

In addition, after Halcyon has incorporated the scope of the consolidated statement of Sinochem International, it is estimated that Sinochem International’s current income can be increased by 10% to 20% through simulation comparison of the financial data before and after the acquisition, and the company’s current profit, net assets, and other financial indicators will be positive. To contribute.

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