Sinochem International to Acquire Sennics with RMB 2.8 Billion


On June 13, Sinochem International released an announcement of assets acquisition, stating to acquire a 60.976% stake in Sennics Co., Ltd. (Sennics) with no more than RMB 2.82 billion via its wholly-owned subsidiary Sinochem International (Overseas) Pte. Ltd. in Singapore (Sinochem International Singapore).

Sinochem International Singapore intends to invest no more than RMB 2.82 billion to acquire 100% equity in Hong Kong Carlyle Sinorgchem Industrial Co., Ltd. held by Oxygen Partners (Hong Kong Carlyle Sinorgchem Industrial Co., Ltd. holds a 40% stake in Sennics), and a 20.976% stake in Sennics held by 8 private investors including Wang Nongyue. Upon the completion of the acquisition, Sinochem International Singapore will hold 60.976% of the shares of Sennics in direct and indirect manners. Afterwards, it will set up a company in Hong Kong as the transferee of the above equity it has acquired.

Sennics is the world's largest manufacturer of professional rubber antioxidants 6PPD (4020), IPPD (4010NA) and intermediate 4-ADPA, with three subsidiary plants respectively in Shandong Caoxian, Shandong Taian and Anhui Tongling. Its anti-aging agent 6PPD also boasts advanced production technology and the largest market share in the world.

Rubber chemicals are indispensable raw materials in industrial rubber production. Thus the sector is regarded to have high synergy with natural rubber, synthetic rubber and fine chemicals in Sinochem International. Through the acquisition of Sennics, Sinochem International can have quick access to the former’s premium brands and production and R&D systems, and build up a rubber chemical industry platform. Taking the advantages of Sinochem in natural rubber business at home and abroad and in its local marketing of synthetic rubber, and leveraging the synergistic value in the tire customers shared between the two sides, Sinochem International expects to strengthen its existing business, rapidly expand the complementary market, and become the dominant leader in the PPD segment at home and abroad. In the next step, the company intends to utilize the marketing advantages of existing product R&D platform to proceed with industrial integration and development of other valuable rubber chemicals, gradually growing into a professional manufacturer with a complete rubber chemical portfolio. On the other hand, by tapping into the potential of other green and high-tech rubber chemicals with high added-value, while giving full play to the competitive advantages of its main rubber business, it seeks to finally secure the global leading position of its rubber product lineup.

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