SIIC Environment Holdings has entered into a sale and purchase agreement to acquire Global Envirotech Investment for some 1.07 billion yuan (S$235.7 million) from Global Environment Investment.
It has also agreed to pay off an outstanding debt in Global Environment Investment (HK). Together, this amounts to a total of 1.55 billion yuan.
Global Envirotech Investment is an investment holding company incorporated in the British Virgin Island. It owns Global Environment Investment (HK), which in turn owns 92.15 per cent of water treatment management firm Fudan Water Engineering and Technology Co.
Some 151.7 million yuan will be paid as a cash deposit while the balance will be satisfied via the issuance of 1.56 billion ordinary shares at an issue price of S$0.132 per share, SIIC said. The issue price represents a discount of approximately 12.2 per cent to the volume weighted average price of the shares traded on the Singapore Exchange on Tuesday.
An independent valuer has put the fair value estimate of 92.15 per cent equity interest of Fudan Water as between 1.569 billion yuan and 1.749 billion yuan.
SIIC added that the proposed acquisition presents an opportunity for the group to acquire a business in the same industry and to expand in geographical coverage and daily treatment capacity.