Singapore-listed rubber firm Halcyon Agri Corp Ltd is in talks to buy rubber processing plants in Indonesia from Lee Rubber for S$400 million to S$500 million ($320 million -$400 million), three people familiar with the matter said on Wednesday.
Earlier in the session, the rubber processor and trader requested a halt in the trading of its shares in Singapore pending an announcement.
Before the suspension Halcyon shares rose as much as 7.7 percent to a one-year high of S$0.975, valuing the company at S$386.1 million.
Halcyon, which owns and operates three natural rubber processing factories in Indonesia and two plants in Malaysia, has been seeking to acquire rubber processing assets to fuel its expansion, taking advantage of a weak rubber market.
Prices of rubber have fallen to their lowest since 2009 due largely to concerns over easing economic growth in top consumer China and a global oversupply
Halcyon declined to comment on the purchase plan, although last week it said that the company was in talks on a potential acquisition of assets and properties, in a response to a query from the Singapore Exchange.
Halcyon debuted on the Singapore Exchange in February last year. Its top shareholders includes Singapore-based private equity firm Credence Partners.
Privately-owned Lee Rubber, one of the oldest rubber trading companies in Asia, could not be immediately reached for comment. ($1 = 1.2503 Singapore Dollars) (Additional reporting by Saeed Azhar, editing by Louise Heavens)