(File Photo)

Sinochem International, a subsidiary of Chinese energy and chemicals conglomerate Sinochem Group offered to buy a majority stake in Singapore's Halcyon Agri Corp. in a deal that would combine their rubber assets to create the world's leading natural rubber supplier.

Sinochem announced on Sunday that it has offered to acquire a 30.07 percent stake in Halcyon Agri, worth at least $175 million. If that happens, Sinochem will also make a mandatory general offer (MGO) at the same price. Shareholders of Halcyon Agri have mandated that Sinochem's share in Halcyon Agri following completion of the MGO would be no less than 53.98 per cent.

Halcyon then plans to make an offer on Singapore-based natural rubber producer GMG Global Ltd.—in which Sinochem has a 51 percent stake—at an exchange ratio of 0.9333 Halcyon shares for each GMG Global share.

Halcyon Agri will also acquire Sinochem's natural rubber processing assets in China and Malaysia. Following these transactions, Sinochem will become the majority shareholder of Halcyon Agri, which will be the holding company of the expanded group.

The deal is expected to be finished by the end of the third quarter this year.