CNE cancels acquisition of BAPP Ethanol Holdings
February 27, 2014
BY Erin Krueger
U.K.-based China New Energy Ltd. has announced that after completing the due diligence process, it will not proceed with the previously announced acquisition of BAPP Ethanol Holdings Ltd., a wholly owned subsidiary of Sino Distillery Group Ltd. CNE originally announced it had entered into a memorandum of understanding (MOU) to acquire the company in December 2013.
"We are very disappointed that discussions have had to terminate, however, findings from the legal and financial due diligence suggested that the transaction was not as first envisaged and would have required the company raising significant funds,” said a CNE official in a statement. “We remain focused on our core strategy and delivering our existing project pipeline. I am pleased to advise that our EPC business is continuing to pitch for new business and we look forward to updating shareholders shortly."
Information published by CNE specifies that the company has requested the trading of its share be resumed, with the suspension from trading lifted as Feb. 25.
In November, CNE announced it had won contracts with won contracts with Visontai Bioetanol FejlesztÅ‘ Korlátolt FelelÅ‘sségű Társaság (“Visontai”) and Helvéciai Biouzemanyag Termelö es Kereskedo Kft. (“Helvéciai”) to develop two biorefinery projects in Hungary. The first project for Visontai is a 150,000-liter-per-day (39,626-gallon-per-day) corn ethanol plant expected to be complete in 2016. The second project for Helvéciai is a 300,000-liter-per-day corn ethanol plant.
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In October, CNE announced an MOU with Sunbird Bioenergy Africa Ltd. to develop a biorefinery in Nigeria. The plant 110 MMly cassava ethanol plant is expected to be operational by 2016.
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