A rubber plantation in Hainan
Rubber producer Hainan Natural Rubber Industry Group plans to acquire a 25 percent stake in Thailand’s third-largest producer of natural rubber, Thai Hua Rubber, from its parent, Lin Lisheng, reports National Business Daily, citing a company filing.
Lin Lisheng currently holds a 60 percent stake in Thai Hua Rubber.
Hainan Rubber will pay two yuan per share for the stake purchase should Thai Hua Rubber be successful in its bid to list on the Stock Exchange of Thailand (SET) at an initial public offering price of not less than 12 baht per share, equivalent to about 2.67 yuan per share, by end September, 2012.
Should Thai Hua Rubber fail to go public by end September 2012, the acquisition price will be 6.9 baht per share, equivalent to about 1.53 yuan per share.
In addition, Thai Hua Rubber may, upon the payment of dividends to Hainan Rubber and getting its approval, buy back the shares at a price of not less than 8.97 baht a share, equivalent to about 1.99 yuan a share, by end October 2012.
The monthly rubber production volume of Thai Hua Rubber totals 39,000 tons.
The company owns 12 rubber factories throughout Thailand and had total assets of 2.35 billion yuan and net assets of 2.2 billion yuan through the end of 2010.
Thai Hua Rubber recorded 2010 net profit of 98.14 million yuan on revenue of 7.41 billion yuan.
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