SHANGHAI Stock Exchange-listed China Hainan Rubber Industry Group is acquiring 574.2 million shares in Halcyon Agri Corporation : 5VJ 0% at US$0.315 apiece, for a total cash consideration of US$180.9 million.

 

The Shanghai stock exchange-listed company made the announcement on Wednesday (Nov 16).

 

This represents a 36 per cent stake in Halcyon Agri, triggering a mandatory conditional cash offer for all the shares in the Singapore-listed company as the acquisition will result in Hainan Rubber owning more than 30 per cent of Halcyon Agri.

 

The offer price of US$0.315 is 50.3 per cent above the last transacted price of S$0.29 for Halcyon Agri on Nov 11 &ndash the last full trading day before the announcement.

 

It is also 73.3 per cent higher than the volume-weighted average price (VWAP) of Halcyon Agri for the 1-month period up to Nov 11, and at a 78 per cent premium to the three-month VWAP.

 

Hainan Rubber will make a formal offer after its purchase of the 36 per cent stake in Halcyon Agri from Sinochem International is completed and certain pre-conditions are met.

 

Halcyon Agri has requested to lift its trading halt on Nov 16, after the announcement was made.