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SIIC Environment enters JV for Yangtze Delta opportunities
MAINBOARD-LISTED SIIC Environment Holdings has incorporated a joint-venture (JV) company for potential investment, construction and operation of waste-to-energy projects in the Yangtze River Delta region, it announced on Wednesday.
The JV company, SIIC Yangtze Delta Environmental Resources (Hong Kong), has a registered capital of HK$30 million (S$5.29 million).
SIIC Environment unit SIIC Environment Tech (Hong Kong) contributed HK$21 million and has a 70 per cent stake in the equity interest of the JV, with Canvest Environmental Investment Company contributing HK$9 million and having the remaining 30 per cent.
SIIC Environment Tech's contribution was fully satisfied in cash and funded by the group's internal resources. The contributions were arrived at following arms' length negotiation, with factors such as the proportionate risks and rewards to be borne by each of the parties upon incorporation of the JV company, said SIIC Environment.
The incorporation of the JV company is not expected to have a material effect on SIIC Environment's net tangible assets or earnings per share for the financial year ending Dec 31, 2019.
SIIC Environment shares closed up 0.5 Singapore cent or 2.27 per cent at S$2.25 on Wednesday before the announcement.