<article>China-listed worldwide conglomerate <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/sinochem-international-corp/" target="_blank">Sinochem International Corp.</a> has announced that it will be merging its rubber business with Singapore-listed company <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/halcyon-agri/" target="_blank">Halcyon Agri</a>, by acquiring the latter&#8217;s shares.</article>

China-listed worldwide conglomerate <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/sinochem-international-corp/" target="_blank">Sinochem International Corp.</a> has announced that it will be merging its rubber business with Singapore-listed company <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/halcyon-agri/" target="_blank">Halcyon Agri</a>, by acquiring the latter&#8217;s shares.
According to a filing, Sinochem has offered to pay S$0.75 (about $0.55) for each share belonging to Halcyon Agri that it does not already own.
Sinochem&#8217;s offer is to the shareholders in Halcyon, who include Angsana Capital, Clear Tower Investments Limited, Pascal Guy Chung Wei Demierre, Andrew Trevatt and Leonard Beschizza. The deal also sees Sinochem making a mandatory general offer (MGO) to all shareholders of Halcyon Agri at the same price &#8211; S$0.75 per share.
According to Sinochem, the shareholders in  Halcyon Agri, including Sam Goi Seng Hui and Credence Capital Fund II (Cayman), all of who together hold 376.4 million shares, equivalent to a 62.73% stake in Halcyon, have agreed to sell their holdings to the China-listed firm.
Going forward, the rubber business will be managed under Halcyon Agri, which will continue to trade under its listing in the SGX.
But Sinochem will be the largest shareholder of Halcyon Agri, and will also be the holding entity for the business, which the companies claimed would be the &#8220;largest and most comprehensive natural rubber supply chain manager&#8221; globally.
This deal will also allow Halcyon Agri access to 153,000 hectares of land in Africa and Southeast Asia, 35 processing centres across Indonesia, Thailand, Malaysia, China and Africa and other assets that previously belonged to Sinochem.
&#8220;Certain shareholders of Halcyon Agri have also provided undertakings such that Sinochem&#8217;s shareholding in Halcyon Agri following completion of the MGO will be no less than 53.98 per cent,&#8221; the companies said in a statement.
The deal structure also sees Halcyon Agri making a voluntary general offer (VGO) for GMG Global Ltd, for all the shares in the latter that it does not already own. It will issue  0.9333 new Halcyon shares for every one GMG share.
When completed, this will make Halcyon a controlling share holder in GMG Global. At the next stage, Halcyon Agri will pay $210 million to acquire Sinochem&#8217;s natural rubber processing assets in China and Malaysia as well as the latter&#8217;s trading businesses. This part of the deal will be executed by issuing 280 million new Halcyon shares.
Sinochem previously closed at 10.79 CNY (about $1.64) while Halycon Agri closed at S$0.73 ($0.53).
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According to a filing, Sinochem has offered to pay S$0.75 (about $0.55) for each share belonging to Halcyon Agri that it does not already owned. 

Singapore: China's Sinochem to merge rubber biz with SG-listed Halcyon Agri

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Singapore: China's Sinochem to merge rubber biz with SG-listed Halcyon Agri

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