Anhui BBCA Biochemical Co., Ltd (BBCA Biochemical, 000930) has recently released announcement of share transfer by the first major shareholder, that COFCO will take over 200 million shares from BBCA Biochemical at the price of 10 billion, and will also become the controlling shareholder of BBCA with a ratio of 20.74% shares.
On December 8, BBCA Group and Bengbu Government of Anhui Province signed the agreement to transfer the shares with COFCO. According to the agreement, BBCA Biochemical Group will transfer 200 million shares out of its 238 million shares (20.74% of the total equity) to COFCO. The price is five yuan per share, and the total transfer price amounts to one billion yuan.
After the shares transfer, the holding of 200 million shares (20.74% of the total equity) by COFCO will become the controlling shareholder.
COFCO has been the main biomass energy producers to promote the use of ethanol fuel. It is committed to becoming a major provider as well as the leading enterprise in biomass energy, and it has made great contribution to the country's energy security. Heilongjiang China Resources Alcohol Co., Ltd (now COFCO Biochemical <Zhaodong> Co., Ltd) is the first enterprise using and producing ethanol, responsible for designated ethanol supply in Heilingjiang area. Jilin Fuel Ethanol with shares from COFCO is responsible for the supply in Liaoning and Jilin areas. The fuel ethanol enterprises of COFCO which are under construction include the third-stage 150,000-ton project of Heilongjiang China Resources, a 300,000-ton project of COFCO Biochemical (Hengshui), and a 200,000-ton project of COFCO Biochemical (Guangxi). In addition, based on the existing grain fuel ethanol, COFCO also is active in the development of non-grain feedstock (such as cassava and sweet sorghum) fuel ethanol, cellulose ethanol and bio-diesel production.
BBCA have an annual production capacity of 440,000 tons of fuel ethanol, mainly responsible for the market supply of about 30 cities such as Anhui, Shandong, Jiangsu, Hebei provinces. With entering into BBCA Biochemical, COFCO will be oriented by the state's industrial policy, further increase investment in fuel ethanol production, accelerate industrial distribution, and development of new products and new technology. It is striving to arrive at the production scale of 3.1 million tons of fuel ethanol and a share of more than 60% of the state planed five million tons in the "11th Five-Year Plan", aiming at the benefit of the environment and the community.
