Mission Biofuels subsidiary increases stake in Indian JV

Perth-based Mission Biofuels Ltd's Mauritian subsidiary Mission Agro Energy Ltd will acquire a 20 per cent stake in the company's Indian joint venture, taking its holding to 90 per cent, the company has announced.

The full text of a company announcement is pasted below

Mission Biofuels Limited (ASX: MBT) through its 100% owned Mauritian subsidiary Mission Agro Energy Limited (MAEL), has reached agreement with Indian Agribusiness Systems Pvt. Ltd and Mr Sunil Khairnar to acquire all the shares they own (20% of the issued capital) in Mission Biofuels India Pvt Ltd (MBIPL). This agreement will see Mission's shareholding in MBIPL increase from 70% to 90%.

MBIPL is the company that Mission is using to develop its upstream feedstock business that is involved in the production and procurement of Jatropha seeds and oil.

This acquisition by MAEL is subject to the approval of the Foreign Investment Promotion Board of India and of the Reserve Bank of India.

The acquisition is expected to positively contribute to earnings for the financial period ending June 2008.