The conditional share purchase agreement (SPA) entered into between Shanghai-listed China Hainan Rubber and Sinochem International (Overseas) Pte. Ltd, where the former will acquire 36% of Halcyon Agri’s shares, will proceed.
On Jan 4, China Hainan Rubber announced that the SPA has taken effect with all the effective conditions fulfilled.
The group added that it will exercise its rights to delegate its obligations under the SPA to a wholly-owned subsidiary to be incorporated. The wholly-owned subsidiary, China Rubber Investment Group Company Limited, will then be the entity undertaking the mandatory general offer (MGO) of Halcyon Agri.
China Hainan Rubber, on Nov 17, 2022, made a cash offer to acquire 574.2 million shares in Halcyon Agri for a total cash consideration of US$180.9 million ($247.8 million) or 44 cents per share.
As the share acquisition will see China Hainan Rubber holding more than 30% of the shares in Halcyon Agri, it will subsequently make a mandatory conditional cash offer for all the remaining shares it does not own in the latter.
Shares in Halcyon Agri closed 0.5 cent higher or 1.28% up at 39.5 cents on Jan 4.
