26 May 2011 06:49 [Source: ICIS news]
GUANGZHOU (ICIS)--China’s Hainan Natural Rubber Industry Group said on Thursday it has signed an agreement to acquire a 25% stake in Thailand-based Thai Hua Rubber to improve its international presence.
The agreement was signed between Hainan Natural Rubber and Thai Hua Rubber’s president and CEO, Luckchai Kittipol, who holds a 60% stake in Thai Hua Rubber, according to the statement.
Under the agreement, if Thai Hua Rubber debuts on the Stock Exchange of Thailand before 30 September 2012, Hainan Natural Rubber will pay the lesser of Thai Baht (Bt) 9.0 ($0.30) per share or 75% of Thai Hua Rubber’s initial public offering (IPO) price for the acquisition, the statement said.
If Thai Hua Rubber fails to debut on the exchange before 30 September 2012, the price would be at Bt6.9 per share. In this case, the seller, with consent of the buyer before 31 October of that year, will have the right to buy back the 25% stake at no less than Bt8.97 per share within six months of obtaining the buyer’s consent, it added.
Hainan Natural Rubber is one of the largest rubber producers and processers in China, with capacities to produce 210,000 tonnes/year of dry rubber and process 320,000 tonnes/year of natural rubber.
Thai Hua Rubber is a major rubber producer and exporter in Thailand.
($1 = Bt30.45)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|