Sinochem International to Make Partial Offer for 51% Shares of GMG Global

SINOCHEM INTERNATIONAL (OVERSEAS) PTE LTD, a wholly owned subsidiary of SINOCHEM INTERNATIONAL CORPORATION (hereinafter called SINOCHEM INTERNATIONAL), issued a partial offer on July 10 for Singapore-listed GMG Global Ltd (hereinafter called GMG). The offer to all shareholders will be made at a price of 26 Singapore Cents per share, with a target of 51 percent shares (1,030,508,500 shares) valued at 267.98 millions Singapore Dollars (approximate 1.34 billion RMB)
The Board of Directors of SINOCHEM INTERNATIONAL approved the proposal on July 10. This offer, valid from July 25 to August 22, is extended to all shareholders registered on July 25.
Based on the fact that from July 1 to July 10, the share price of GMG fluctuated between 20 and 23 Singapore Cents, the price of 26 Singapore Cents suggested in this offer underlies a 20 percent to 30 percent premium.
To ensure the success of the acquisition, the two largest shareholders of GMG representing approximate 60.71% of the shares have given an irrevocable undertaking that if the 51 percent level is not reached, they will transfer some of their shares to SINOCHEM INTERNATIONAL (OVERSEAS) PTE LTD to meet the target.
GMG is an integrated producer engaged in the planting, growing and marketing of natural rubber. It operates in Africa, Europe, Asia and North America. GMG owns natural rubber plantation with processing facilities in Cameroon and Ivory Coast and has processing facility in Indonesia. Its wholly-owned subsidiary in Cameroon has developed a naturally closed circulatory system for plantation with processing facility on a land concession of 41,000 hectares, which implements intensive management over large-scale agricultural production.
With the acquisition completed, SINOCHEM INTERNATIONAL will raise its profile in global rubber industry dramatically. After integration, the nature rubber division of SINOCHEM INTERNATIONAL will have the access to African upstream resources and European market as well, therefore enhancing the overseas marketing system.

As an important strategic material, nature rubber contributes over half of the usage to the tire production. Statistics show that nowadays China account for only 7 percent of the worldwide natural rubber production, but more than 20 percent of the consumption. Furthermore, given the fact that the growth rate of Chinese output is mere one third that of the consumption, the gap between supply and demand is sure to be widening.

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