A different ballgame for United Envirotech?

NEWS of the intended acquisition of United Envirotech by Chinese conglomerate Citic has created excitement in the company, the market's reason being that United Envirotech stands a chance of joining the league of SIIC Environment Holdings (formerly Asia Water Technology) and China Everbright Water (formerly HanKore Environment Tech Group) - two Singapore-listed wastewater treatment companies with the backing of a Chinese state-owned firm.

Being backed by a state-owned conglomerate offers the opportunity for United Envirotech to penetrate China's burgeoning wastewater treatment sector. And investors hoping for a breakthrough for United Envirotech might be drawing parallels with Shanghai Industrial Holdings' 2010 acquisition of the then beleaguered Asia Water Technology.

But the big question is whether the market's optimism has been misplaced. For the ballgame appears to be different for United Envirotech. And investors holding their breath for history to repeat itself may be in for disappointment.