Sinochem International has proposed to sell a 36 percent stake in rubber producer Halcyon Agri Corporation Limited to China Hainan Rubber Industry Group Co Ltd. This marks another important step in Sinochem International’s “fine chemical strategy” in which fine chemicals represented by new chemical materials stay at the core of the business.
Upon the transfer, the company’s share in Halcyon Agri will reduce to 29.2 percent. The transaction consideration amounts to more than US$180.87 million.
The proceeds from the asset sale will not only help the company retrieve capital and boost cash flow, but also drive innovation and transformation by accelerating the development of new chemical materials as its core business through more resource input.