China Everbright unit buys stake in Tianjin firm

Singapore

CHINA Everbright's indirect wholly owned subsidiary has won a public bid for the purchase of a 65 per cent equity interest in water treatment firm Tianjin Binhai New Area Huantang Sewage Treatment. The consideration for the purchase is 666.3 million yuan (S$136.4 million).

Tianjin Binhai New Area Huantang Sewage Treatment is a wholly state-owned enterprise. The projects it owns have an aggregate daily water treatment capacity of 220,000 tonnes. Its Beijing wastewater treatment plant, including a phase one project and an upgrading project, has a daily wastewater treatment capacity of 150,000 tonnes.

Its Beitang reusable water plant, including a reusable water project and water supply pipeline network 49km in length, has a daily reusable water supply capacity of 45,000 tonnes.

The Gangdong wastewater treatment plant, including a phase one project, phase one upgrading project and phase two expansion project under construction, has a daily wastewater treatment capacity of 25,000 tonnes.

China Everbright said the potential transaction will expand its presence and influence in Tianjin. It also provides a solid foundation for further waste water treatment projects to be undertaken in the municipality and the surrounding regions, the group said in a bourse filing on Sunday.

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China Everbright's unit, Beijing Everbright Water Investment Management, has yet to enter into a transfer agreement with the company's sole shareholder.

The shareholder is Tianjin Binhai Environmental Protection Asset Development. It is principally engaged in, among other things, the construction of infrastructure for environmental protection industrial parks, household waste-to-energy, wastewater treatment, and the manufacturing and research and development of environmental protection materials and environmental protection equipment.

Both parties will negotiate the terms of the agreement, including the payment of the consideration, the timing and manner of payment and conditions precedent to the potential transaction. The agreement will be drawn up in accordance with the rules and regulations of the Tianjin Property Rights Exchange.

Shares in China Everbright ended trading flat at 22.5 Singapore cents on Friday.