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.
