Halcyon Agri offers to buy Indonesian rubber plants for $450 mil

Singapore-based rubber firm Halcyon Agri Corp said on Thursday it has offered to buy rubber processing plants in Indonesia for $450 million.

The announcement came a day after Reuters reported that Halcyon is in talks to buy plants from privately held Lee Rubber for $400 million to $500 million. Halcyon said shareholders of Anson Group, which owns and operates a total of 9 crumb rubber factories in Indonesia, have accepted the firm's interest to acquire the assets, subject to execution of a sale and purchase agreement.

Lee Rubber owns the Anson Group, sources told Reuters.

The deal is expected to be signed next month, one of the sources said.

Halcyon, which owns and operates three natural rubber processing factories in Indonesia and two plants in Malaysia, has been seeking to acquire rubber processing assets to fuel its expansion, taking advantage of a weak rubber market.