China Everbright unit wins 666.3m yuan bid for 65% stake in Tianjin enterprise

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 49 km 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 wastewater treatment projects to be undertaken in the municipality and the surrounding regions, the group said in a bourse filing on Sunday.

China Everbright's unit, Beijing Everbright Water Investment Management, will enter into a transfer agreement with the company's sole shareholder, Tianjin Binhai Environmental Protection Asset Development.

The shareholder is principally engaged in - among other things - the construction of infrastructure for environmental protection industrial parks, household waste-to-energy and wastewater treatment.

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