SIIC to buy stake in China wastewater treatment firm for S$55.8m

WASTEWATER treatment firm SIIC Environment said on Thursday morning that it will buy 60 per cent of Ranhill Water (Hong Kong) for 273.9 million yuan (S$55.8 million) in cash.

The target company mainly provides wastewater treatment services to industrial parks in China on concession contracts, with a total design capacity reaching 260,000 tonnes a day. It is also involved in a joint venture in Malaysia.

Its net assets for the financial year ended Dec 31, 2015, amount to 363 million yuan.

A shareholder's loan of about US$30 million will also be extended to the target company.

The cash consideration for the acquisition and the shareholder's loan will be funded by bank borrowings and internal cash resources, SIIC said.

"The proposed acquisition presents an opportunity for the group to acquire a profitable business in the industrial wastewater treatment sector and is in line with the group's ordinary course of business, with a view to expand the group's current business and its landscape, thereby enhancing shareholders' value," it said.

SIIC opened unchanged at S$0.60 a share following the announcement.