Ethanol company subject to reverse takeover

It has been reported China New Energy is to enter a reverse takeover of BAPP Ethanol Holdings, a wholly-owned subsidiary of Sino Distillery Group.

The restructure will mean BAPP will have an indirect 75% interest in Harbin China Distillery, which owns and operates a 60,000 tonne a year biorefinery in north-east China.

The deal is subject to further due diligence and negotiation between CNE and Sino but, if successful, CNE has requested its shares be suspended from trading on AIM pending further internal discussions.