CITIC Envirotech to acquire 60% stake in CITIC Qingyuan for 378m yuan

CITIC Envirotech Ltd (CEL) said it is taking a 60 per cent stake in fully-integrated environmental and utility company CITIC Environment (Qingyuan) Technology Development Co Ltd (CITIC Qingyuan) in Qingyuan City of Guangdong Province for 378 million yuan (S$78.3 million).

The current owner of CITIC Qingyuan, who is an individual shareholder, holds the remainder 40 per cent stake.

CITIC Qingyuan undertakes the supply of industrial water, steam and electricity and provides wastewater treatment and recycling services to the textile industrial park.

The existing treatment capacities for the wastewater treatment and water supply is 22,000 cubic metre per day each, while electricity supply is at 300,000 kilowatthours per day, steam supply at 1,400 tonnes per day and heating oil at 3,500 gigajoule per day.

Due to the rapidly expanding industrial park, it is expected that CITIC Qingyuan will immediately undertake phase two of the project to expand its environmental facilities to meet the increasing demand. CEL's membrane bio-reactor (MBR) technology will be employed in the expansion and recycling of wastewater.

CEL said that the acquisition of a fully-integrated project to provide water, wastewater treatment, steam and power generation is in line with its key strategic thrust to embark on the Circular Economy initiative, that is, to work with industrial parks to achieve an efficient and self-sustained economy within the parks.

The capital injection will come from proceeds of the issuance of the US$180 million senior perpetual securities pursuant to its US$750 million multicurrency perpetual securities issuance programme and bank financing.