Below is a report I just saw on Bloomberg website.
Those of us that hold AAE might take some comfort:
(Update2)
By Angela Macdonald-Smith and Ying Lou
Nov. 16 (Bloomberg) -- China Grand Forestry Resources Group Ltd., the Hong Kong-listed men's clothing and timber products supplier, agreed to buy a bio-energy company for HK$6.4 billion ($822 million) as China's demand for alternative fuels surges.
Grand Forestry will buy Yunnan Shenyu New Energy, a Chinese company that mainly does research and development on biological energy sources such as using the oilseed-bearing, drought- resistant Jatropha Curcas tree to make auto fuels, the company said in a statement to the city's stock exchange today.
China is set to become the biggest consumer of renewable energy, which may account for more than 15 percent of the nation's energy use by 2020, WorldWatch Institute said yesterday. Biofuels, such as biodiesel and ethanol, may replace as much as 24 percent of global gasoline and diesel use by 2030, according to BP Plc, Europe's second-largest oil company.
The timber company will pay HK$400 million in cash and will issue HK$6 billion in notes convertible into shares at HK$2.50 each, it said in the statement. Grand Forestry said it is buying Yunnan Shenyu New Energy from Forcemade Investments Ltd. The acquisition may be completed by Jan. 31.
Grand Forestry applied for its shares, halted Nov. 5, to resume trading at 2:30 p.m. The shares have more than tripled in the past year and last traded at HK$2.71
AAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
