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Thursday September 6, 9:12 AMChina Grand Forestry eyes biomass energy projectHONG KONG, Sept 6 (Reuters) - Ecological forestry company China Grand Forestry Resources Group Ltd said it planned to buy a biomass energy project with a market value of around US$962 million as it moves into a new area of high-growth potential.The company said in a statement late on Wednesday it intended to buy two Chinese firms that hold a biomass energy project, which extracts bio-diesel oil from the fruit of a Jatropha Curcas tree and uses it for power generation. The cost of the deal was subject to further negotiations. The deal would be settled by a combination of cash, an issue of new shares at HK$2.5 apiece, and an issue of convertible notes with a conversion price of HK$2.5 per share, China Grand said. Shares in the company have more than doubled so far this year to close at HK$2.51 on Tuesday prior to a trading suspension. Trading in the shares will resume on Thursday. The assets held by the two Chinese firms include a patent for a new species of Jatropha Curcas tree, forest land in China and in Southeast Asia, a bio-diesel refinery plant which is under construction, and a hotel. The fair market value of the assets to be shown in a valuation report should not be less than HK$7.5 billion (US$962 million), the company said. For details please see http://main.ednews.hk/listedco/listconews/sehk/20070905/LTN20070905385.pdf (US$1=HK$7.8) |
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