Individual who will hold 29.5% of Darco sells two water projects in China

WATER treatment specialist Darco Water Technologies revealed late Monday it had been informed that Wang Zhi - an individual who will acquire shares representing about 29.5 per cent of Darco's enlarged share capital - has recently disposed of his entire interest in two of four water supply and treatment projects he owns in China.

This follows the successful passing of three resolutions, including the one in favour of Mr Wang's share placement, at Darco's extraordinary general meeting on Monday afternoon.

It is unclear if shareholders - who voted 99 per cent in favour of Mr Wang's placement - were aware of the disposals at the time of the vote.

Darco has yet to respond to queries made by The Business Times on Tuesday.

The company will release further announcements to update shareholders, as and when there are material updates or developments on the placement, it said in a filing with the Singapore Exchange.

Mr Wang is an independent investor who has more than 15 years of experience in the business of water and wastewater treatments, as well as water supply. He was referred to the company by a certain Lee Fie Jye.

From the proceeds arising from the share placement, Darco intends to use approximately 30 per cent as working capital for engineering contracting business and expansion.

The remainder of the proceeds will be used for investment in environmental-related infrastructure projects to generate recurring income.

Darco shares last traded on March 8 at S$0.45.