Cofco Holdings will not acquire Fengyuan Biochemicals during the year

China Grain and Oil Holdings, which listed in Hong Kong in March, said yesterday it would not exercise its option to buy Fengyuan's biochemical assets (000930) and Xinjiang Tayuan from its parent company until April next yearChina Grain and Oil Holdings, a chinese grain processing and biofuel producer, has signed a non-competition contract with its parent company, Cofco Group, which may choose to acquire 20.74 percent of Fengyuan's equity and 14.35 percent interest in Xinjiang Tayuan from its parent company, which came into effect in April this yearBut Cofco yesterday announced that it would not exercise it until the first week of the right to chooseCOFCO Holdings stressed that it had not decided to give up the exercise of the option in an absolute basis at a later date and that the company would make an annual assessment within the five-year validity periodThe board said that if Cofco decided not to exercise its right to acquire the two companies in the fifth year, the parent company could sell to an independent third party within six months of the decision taking effectFengyuan Biochemical is a leading domestic fuel ethanol industry, last year COFCO Group at a price of 5 yuan / share to 20 million shares, accounting for 20.74 percent of the company's total share capital, to become the controlling shareholder of Fengyuan biochemical;Cofco Holdings explained that the main reason for the company to abandon the right to acquire the acquisition is that Fengyuan Biochemicals in 2006 and the first quarter of this year showed significant losses, the economic outlook is not clear; COFCO Still intends to concentrate its resources on its core business, while Tayuan's main products in Xinjiang are aimed at the high-end market, but have not yet gained wideacceptance in the marketDue to the decline of the product market, Xinjiang Tayuan has been discontinued since the end of 2005, the economic outlook is also uncertainat the end of 2005, COFCO Group acquired S Ji Biochemicals, which china resources group held, but after a tussle with China Resources and China Airlines Group, COFCO Group acquired the assets and liabilities of SJi Biochemical, and SJi Biochemical's shell was taken away by China AirlinesThe market speculation group will be from sji biochemical replacement of the assets and Feng protoandcing cofco holding seine integration, forming complementary advantages of the superposition effectearlier, COFCO Chairman Ning Gaoning said in March this year that COFCO's specialized companies will eventually be listed, in Hong Kong and the A-share market to form a COFCO listing group, indirectly to achieve the overall listing of the groupHe said at the time: "The right time for the future, Fengyuan biochemical and Cofco Holdings will be integrated, but the specific way of integration has not yet been determined."Cofco Holdings has signed a non-competition contract with COFCO Group, which may give priority to the acquisition of 20.74 percent interest in Fengyuan Biochemical and 14.35 percent from the parent company, which came into effect in April this yearChina Grain and Oil Holdings, which listed in Hong Kong in March, said yesterday it would not exercise its option to buy Fengyuan's biochemical assets (000930) and Xinjiang Tayuan from its parent company until April next yearChina Grain and Oil Holdings, a chinese grain processing and biofuel producer, has signed a non-competition contract with its parent company, Cofco Group, which may choose to acquire 20.74 percent of Fengyuan's equity and 14.35 percent interest in Xinjiang Tayuan from its parent company, which came into effect in April this yearBut Cofco yesterday announced that it would not exercise it until the first week of the right to chooseCOFCO Holdings stressed that it had not decided to give up the exercise of the option in an absolute basis at a later date and that the company would make an annual assessment within the five-year validity period The board said that if Cofco decided not to exercise its right to acquire the two companies in the fifth year, the parent company could sell to an independent third party within six months of the decision taking effect Fengyuan Biochemical is a leading domestic fuel ethanol industry, last year COFCO Group at a price of 5 yuan / share to 20 million shares, accounting for 20.74 percent of the company's total share capital, to become the controlling shareholder of Fengyuan biochemical; Cofco Holdings explained that the main reason for the company to abandon the right to acquire the acquisition is that Fengyuan Biochemicals in 2006 and the first quarter of this year showed significant losses, the economic outlook is not clear; COFCO Still intends to concentrate its resources on its core business, while Tayuan's main products in Xinjiang are aimed at the high-end market, but have not yet gained wideacceptance in the market Due to the decline of the product market, Xinjiang Tayuan has been discontinued since the end of 2005, the economic outlook is also uncertain at the end of 2005, COFCO Group acquired S Ji Biochemicals, which china resources group held, but after a tussle with China Resources and China Airlines Group, COFCO Group acquired the assets and liabilities of SJi Biochemical, and SJi Biochemical's shell was taken away by China Airlines The market speculation group will be from sji biochemical replacement of the assets and Feng protoandcing cofco holding seine integration, forming complementary advantages of the superposition effect earlier, COFCO Chairman Ning Gaoning said in March this year that COFCO's specialized companies will eventually be listed, in Hong Kong and the A-share market to form a COFCO listing group, indirectly to achieve the overall listing of the group He said at the time: "The right time for the future, Fengyuan biochemical and Cofco Holdings will be integrated, but the specific way of integration has not yet been determined." Cofco Holdings has signed a non-competition contract with COFCO Group, which may give priority to the acquisition of 20.74 percent interest in Fengyuan Biochemical and 14.35 percent from the parent company, which came into effect in April this year (name)