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Tritech Group's proposed acquisition of 2 companies falls through; to establish JV in Shanghai
TRITECH Group announced late on Thursday that it has entered into a termination agreement in connection with its proposed acquisition of Shanghai Haihan Environmental and Nanjing Qinghai Environmental.
The termination was mutually agreed upon due to regulatory restrictions in China relating to foreign-funded enterprises which have led to a prolonged process in its completion and substantial unforeseen additional costs.
Instead, Tritech and the vendor, an individual named Wang Man, have agreed to establish a separate joint venture company in Shanghai, where Tritech will have a 60 per cent equity interest and Mr Wang the remaining 40 per cent equity interest, as a platform to attain the original objectives.
As the target companies are not wholly-owned subsidiaries of Tritech Environmental, there has been no dilution in the percentage of the company's equity interest in Tritech Environmental as the consideration shares were not issued and allotted, said the group.
Tritech Environmental is the PRC-incorporated company that is a wholly-owned subsidiary of Tritech Group.