China Huishan Dairy to buy biowaste-to-energy business

Liaoning-based China Huishan Dairy Holdings Co Ltd (HKG:6863) said Wednesday it will acquire the entire equity stake in an entity operating a bio-waste to renewable energy facility in Faku county.

Target company Zhao Ji Investment is chiefly active in bio-waste processing for the production of condensed natural gas (CNG) with organic fertilizer as a by-product. The move is in line with the vertically-integrated dairy firm’s strategy “to become China’s largest renewable energy company and China’s largest organic fertiliser producer in due course,” it explained.

The company’s unit Liaoning Huishan Dairy Group Ltd signed an agreement for the transaction with the vendors -- Yang Kai and Yang Jianing -- on September 29. Under the terms of the deal, it will pay CNY 83.2 million (USD 13.1m/EUR 11.7m) for a 100% interest in the target.

The acquisition is currently pending the fulfillment of a number of customary conditions. Completion is estimated for end-November 2015.

(CNY 1.0 = USD 0.157/EUR 0.141)

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