Hainan State Farms Investment and Holdings Group has completed share acquisitions in two enterprises.
It purchased a 45% stake in Indonesia-based natural rubber processing and trade enterprise KM and a 62.5% stake in Singaporean rubber trading enterprises ART.
The acquisition were conducted by HSF(S) Pte., Ltd., a wholly-owned subsidiary of Hainan State Farms Group , for 137 million US dollars.
KM owns 14 rubber factories and five rubber planting enterprises in Indonesia, with annual natural rubber output of 720,000 tons. Most of its products are supplied to the tire market in Europe and North America.
ART is a Singapore-based natural rubber trader, who buys natural rubber from KM for sale.
In 2016, the two enterprises’ operating revenue totaled 6.5 billion yuan, with net profits at about 106 million yuan.
The acquisition is the first overseas M&A case conducted since the establishment of Hainan State Farms Group.
Before that, to prevent potential peer competition, the group said it would give priority to Hainan Rubber when transfers all the stakes hold by HSF(S) Pte. Ltd. in KM and ART.
