Friday, April 1, 2016

M&A deal involving another SGX-listed rubber company to be unveiled

Thailand’s Sri Trang Agro-Industry, which is dual-listed in Bangkok and Singapore, is hammering out a corporate transaction that could expand its rubber processing capacity by one-third to two million tonnes a year, reports The Edge Singapore in its latest issue, citing sources with knowledge of the deal. The announcement of the transaction could be made as early as today.

The deal is likely to be taken as a further sign that a major consolidation of the rubber industry is now underway. And, it could lead to renewed interest in the deflated shares of rubber companies in the region.

Last week, a three-way merger of China’s Sinochem International Corp, GMG Global and Halcyon Agri Corp was announced. The corporate exercise will see Halcyon emerge as a new Singapore-listed rubber giant, with processing capacity almost equal to Sri Trang's and plantations spanning some 153,000 ha.

In its latest cover story, The Edge Singapore looks into the prospects for both Sri Trang and Halcyon, presenting them as two interesting but very different vehicles to play the shift now unfolding in the rubber industry.

For more on the story, get your copy of The Edge Singapore today.

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