Halcyon Agri in talks to buy Lee Rubber's Indonesia plants
ERJ staff report (TP)
Singapore – Halcyon Agri Corp Ltd is in talks to buy rubber processing plants in Indonesia from Lee Rubber for S$400 million to S$500 million (€235m-€294m).
On 18 June, the company asked for a halt in the trading of its shares in Singapore pending an announcement.
Before the suspension Halcyon shares rose as much as 7.7 percent to a one-year high of S$0.975, valuing the firm at S$386.1 million.
Halcyon, which owns and operates three natural rubber processing factories in Indonesia and two plants in Malaysia, has been looking to obtain rubber processing assets to power its expansion plans, taking advantage of a weak rubber market.
Prices of rubber have fallen to their lowest since 2009 due mainly to anxieties over easing economic growth in top consumer China and a worldwide oversupply
Halcyon declined to comment on the purchase plan, but last week said it was in discussions on a potential acquisition of assets and properties, in response to questions from the Singapore Exchange.
Halcyon debuted on the Singapore Exchange in February last year. Its top shareholders includes Singapore-based private equity firm Credence Partners.
Privately-owned Lee Rubber is one of the oldest rubber trading companies in Asia.