(Adds information on funding, updates share price)
SINGAPORE, June 20 (Reuters) - 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