Metallurgy / Chemicals / Rubber & Plastics

According to the Huacheng Import and Export Data Observation Report, Hainan Natural Rubber Industry Group Co., Ltd. (hereinafter referred to as Hainan Rubber) disclosed a major asset purchase report (draft) on the evening of November 16. The company plans to purchase 574 million issued common shares of HAC Company held by it from "Sinochem New" in cash by setting up a new wholly-owned overseas subsidiary, SPV (about 36.00% of the issued common shares of HAC Company), After the completion of the transfer of this agreement, a mandatory tender offer will be launched for all the remaining shares of the target company.

According to the relevant provisions of the Share Purchase Agreement to be signed in this transaction, Sinochem New will not participate in this mandatory offer. Depending on the acceptance of the offer, overseas SPVs can acquire up to 555 million issued ordinary shares of HAC Company (accounting for 34.80% of the issued ordinary shares of HAC Company) through mandatory offer. Through this transaction, HAC will become a holding subsidiary of Hainan Rubber. Hainan Rubber finally holds at least 36.00% of the shares of HAC Company through overseas SPV, and at most 70.80% of the shares of HAC Company. Huacheng Import and Export Data Observation Report.

According to the observation report of Huacheng import and export data, the subject of the transaction, HAC, is the holding company of Sinochem International, a subsidiary of Sinochem, with a shareholding ratio of 65%, mainly engaged in the planting, processing and trading of natural rubber. This means that the natural rubber business of Sinochem International will be included in Hainan Rubber, another listed company with the most complete natural rubber industry chain in China.

According to the Huacheng Import and Export Data Observation Report, after the completion of this transaction, Hainan Rubber will obtain overseas processing capacity of natural rubber and latex, and improve its competitiveness in the international market. At the same time, Hainan Rubber will obtain the target company's downstream customer resources, and use the target company's European and American trade network to further cut into the global natural rubber trade and expand the company's natural rubber trade business scale. In addition, Huacheng Import and Export Data Observation reported that Hainan Rubber will obtain the target company's natural rubber plantations in Cameroon, Cote d'Ivoire and other emerging natural rubber production areas, and strengthen the international planting resource layout.