Insurance underwriting company China INSOnline announced today that it has entered into a letter of intent dated September 27, 2010 related to a proposed transaction offered by Dingneng Bio-Technology Co., Ltd. ("Dingneng") to acquire common shares of CHIO through merger, direct exchange or any other form in one or a series of mutually agreed upon transactions. In connection with the transaction, Dingneng will become a subsidiary of CHIO.
The proposed transaction is subject to satisfactory completion of due diligence by Dingneng, the execution of definitive agreements, the approval from the related regulatory bodies and the approvals of both the board of directors and the shareholders of CHIO and Dingneng.
There is no assurance that any definitive agreement will be entered into, that any proposed transaction will be approved by the shareholders of CHIO or that any transaction will be completed as a result of the execution of the letter of intent.
Dingneng Bio-Technology Co., Ltd., organized under the laws of the People's Republic of China ("Dingneng"), is a leading green energy company that engages in bio-diesel production, refinement and distribution in Southern China. Dingbeng has its own patents and specializes in extracting raw oil from plant sapindus mukorossi and refining into industrial standard bio-diesel. With well-established raw material supply and comprehensive refined bio-diesel distribution networks, Dingneng is one of the most competitive green energy suppliers in China.
With this proposed transaction the stock could get investor's attention again.