(Yicai Global) Nov. 28 -- The share price of China Agri-Industries Holdings has jumped after its parent COFCO said that it and its affiliates plan to take the biofuel and oilseed processing subsidiary private today.

The stock price of China Agri-Industries [HK: 00606] rose 27.4 percent to HKD4.04 (US 52 cents) this morning. That is almost the offer price of HKD4.25 for each share. Based on that figure, the total amount of investment would be HKD9.2 billion (USD1.1 billion). 

The unit has entered a vicious cycle. The slowdown in global economic growth in recent years has brought some uncertainty to the company's development, resulting in a weak stock price, the Beijing-based agricultural giant said in a statement yesterday. As the unit's ability to raise capital in the capital market is limited, it has become difficult for it to fuel the parent's business development, it added. 

China Agri-Industries got listed in March 2007 and its share price has declined over two-fifths off its all-time peak in October 2010.

Editor: Emmi Laine