Halcyon Agri

Halcyon Agri: Agreed to buy natural rubber delaer and distributor New Continent Enterprises (NCE). The consideration of the deal will be determined at 118% of NCE’s net book value as at 31 Jul’14, in which the latter is decided between Halcyon and the sellers. Consideration will be paid in four equal payments, starting from completed date of transaction. With the completion of Anson Company in August, Halcyon’s export capacity has risen to ~748,000 tonnes, transforming itself from a niche producer of Standard Indonesian Rubber (SIR) to Indonesia’s second largest SIR producer. Together with the Standard Malaysian Rubber (SMR) asset base, Halcyon is a top 3 rubber producer globally. The purchase of NCE squares off the increase in productive capacity by providing Halcyon with direct access to EU and USA, being the two largest SIR and SMR consumer markets in the world, where the world’s top tyre companies are situated. Halcyon is trading at 28x forward P/E and 2.7x P/B