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C&G to sell its principal businesses to Chinese business partners

TWO years after disposing its business in China, waste-to-energy firm C&G Environmental Protection Holdings is proposing to sell the remainder of its business to two different Chinese business partners.

On Aug 25, it agreed to dispose its principal Thailand operating subsidiary, C&G Environmental Protection (Thailand) Company Limited, to New Sky Energy (Thailand) Company Limited, for 187.7 million yuan (S$38 million).

It also entered into a conditional sale and purchase agreement with Ahead Auto Limited to sell all its group companies other than C&G Thailand for HK$600 million (S$105 million).

In total, sale proceeds add up to S$0.197 a share, a premium of approximately 74 per cent to the volume weighted average trading price for trades done on Aug 24.

Proceeds will be distributed via a special dividend.

Once C&G becomes a cash company, it intends to stay listed for up to 12 months according to listing rules, as additional value can be created for shareholders if it acquires a new business.

New Sky is a subsidiary of New Sky China, a waste-to-energy firm owned by Yau King Fung. New Sky China was previously appointed by C&G as engineering, procurement and construction contractors for C&G's plants.

Ahead Auto, owned by Huang Jin Zhi, is involved in environmental-related businesses in China. C&G has purchased environmental related equipment from the company in the past.

C&G last traded at S$0.127. Net asset value at end-June was 125.34 HK cents, or S$0.22 a share.