Halcyon Agri‘s Executive Chairman and CEO Robert Meyer said: „It is highly complementary to Halcyon‘s business, transforming the marketing and distribution capabilities of Hevea Global in a similar manner as the acquisition of Anson transformed our production capacity.“
NCE participates actively throughout the full value chain, from sourcing raw materials to marketing, transporting, importing and exporting all leading grades of natural rubber. NCE‘s supply chain activities are supported by its offices in the world‘s largest destination markets. In 2013, NCE sold approximately 250,000 tonnes of natural rubber to more than 150 customers around the world.
The consideration for the acquisition will be determined based upon NCE‘s Net Book Value as at 31 July 2014 and will be satisfied in four equal quarterly instalments in cash or, at the vendors discretion, in Halcyon Agri shares at issue prices ranging from S$0.90 to S$1.80 per share. Based upon NCE‘s current estimated net book value as at 31 July 2014, the total consideration would be approximately US$30 million.
In the event that the vendor elects cash settlement, the acquisition will be funded through a combination of internal resources and/ or bank borrowings. Should the vendor choose settlement in the form of Halcyon Agri shares, these will be issued at S$0.90 (Sep 2014 tranche), S$1.20 (Dec 2014 tranche), S$1.50 (Mar 2015 tranche) and S$1.80 (Jun 2015 tranche) respectively.
(dw)
