Sinochem International intends to acquire SIAT to expand its rubber business

Sinochem International’s Singapore-listed company GMG plans to invest 31.6 shares of SIAT in the acquisition of Belgian company Fimave NV for 76.18 million euros, accounting for 18.19% of the shares of SIAT before the transaction; it plans to invest EUR 116.38 million to subscribe for SIAT’s new Additional 5539 new shares were issued. The total investment of GMG in this transaction was EUR 195.2 million. GMG will hold a 35% stake in SIAT after the completion of all transactions.

SIAT's share capital is 24 million euros. Its main business is the cultivation and production of natural rubber and oil palm. Its plantation assets and factories are located in Côte d'Ivoire, Ghana, Nigeria and Gabon. Belgian Fimave NV is currently the controlling shareholder of SIAT.

In 2010, SIAT's total assets were 230 million euros, net assets were 122 million yuan; operating income was 138 million yuan and net profit was 15 million euros. As of December 31, 2011, SIAT's valuation ranged from 575 million to 673 million euros.

The company stated that with the deepening of GMG's business in Africa, this transaction will not only expand the GMG's resource network, but also bring management experience for GMG's business in Africa. At the same time, the company is also optimistic about the development potential of SIAT's rubber plantations. SIAT currently has about 5,150 hectares of natural rubber planting resources. Of these, about 15,000 hectares have been planted, and the remaining uncontribution of the planting resources will increase earnings for SIAT and its subsidiaries in the future.