(Adds information on funding, updates share price)
SINGAPORE, June 20 Shares in Halcyon Agri Corp
Ltd quickly pared losses on Friday as the company
assured investors that a recently announced acquisition will be
funded through internal resources and it has no plan to issue
rights or new shares.
Halcyon Agri's share price dropped as much as 10.8 percent
in early trade, hit by uncertainty on how the company will fund
a proposed S$450 million ($359.91 million) acquisition of rubber
processing plants in Indonesia.
The company said it intends to fund the acquisition from
internal resources. It also plans to use the $320 million credit
facilities with Credit Suisse and DBS, and proceeds from the
issuance of notes and perpetual securities under a S$300 million
debt programme established in April.
Angsana Capital Ltd, a company beneficially owned by the
company's executive chairman and chief executive officer, has
committed a capital contribution of up to S$90 million, to help
finance the acquisition.
"There is presently no intention for the company to
undertake a rights issue or placement of new shares in the
company to finance the proposed acquisition," Halcyon Agri said.
After the transaction is completed, Halcyon will become
Indonesia's second-largest producer and exporter of natural
rubber, the company said.
Halcyon shares traded at S$0.95 after they resumed on late
Friday, up from an intra-day low of S$0.87. More than 18 million
shares changed hands, more than 10 times of its average 90-day
daily trading volume.
($1 = 1.2503 Singapore dollars)
(Reporting by Rujun Shen; Editing by Matt Driskill)