Halcyon Agri

Halcyon Agri: Finalized the terms for its proposed acquisition of Centrotrade Rubber Group. The US$12m deal, subject to audited NAV at end-2014, will entrench the group's position as a world-leading sourcing and distribution network for natural rubber products. The purchase is expected to bolster Halcyon's assess to the EU and US markets- the two largest Standard Indonesian Rubber and Standard Malaysian Rubber consumer markets in the world, where the world’s top tyre companies are based. Centrotrade Rubber Group is a leading rubber products distributor known for its strong technical capabilities and operates several warehouses and storage tanks in Europe and US. Together with the recent acquisition of New Continent Enterprises, which recorded sales of 250,000 tonnes in 2013, Halcyon’s current capacity is expected to grow by 52% to an estimated 1.1m tonnes. At $0.565, Halcyon is valued at 9.1x forward P/E. The street has 1 Buy and 1 Hold rating, with 12-month TP of $0.64 for the rubber distributor.