SINGAPORE (Sept. 2, 2014) — Halcyon Agri Corp. Ltd., a Singapore-based natural rubber (NR) processing and merchandising firm, has signed a Memorandum of Understanding to acquire NR distributor New Continent Enterprises (Private) Ltd. (NCE) for approximately $30 million.
The estimated sale price is based on NCE’s current estimated net book value as of July 31, 2014, Halcyon Agri said in an Aug. 13 press release. Payments will be in four quarterly installments of either cash or, at the vendor’s discretion, in Halcyon Agri shares.
“New Continent is a long-established and globally renowned rubber distributor and dealer with an extensive customer base and a powerful distribution network,” said Robert Meyer, Halcyon Agri executive chairman and CEO, in the press release. NCE’s business will be highly complementary to Halcyon Agri’s, Mr. Meyer said.
NCE participates throughout the entire NR value chain, from sourcing new materials to marketing, transporting, importing and exporting all leading grades of natural rubber, according to the release. In 2013, NCE sold approximately 250,000 metric tons of rubber to more than 150 customers worldwide.
Halcyon Agri is one of the largest producers of Standard Indonesian Rubber, with six Indonesian subsidiaries and 12 total crumb rubber factories producing approximately 568,000 metric tons of rubber annually. The company’s risk management and merchandising operations are in Singapore.
Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?
|I wholeheartedly support their action – something needs to be done.||
|I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.||
|I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.||
|I’m kind of on the fence and not sure what’s right, but need more information before deciding.||
|I don’t really care whether or not relief is granted.||
|Total votes: 78|