Zheneng Jinjiang Environment proposes to take company private at S$0.70 a share or to issue new shares

[SINGAPORE] The board of Zheneng Jinjiang Environmental , along with Jieneng Investment, has proposed a scheme of arrangement to take Zheneng Jinjiang Environmental private at S$0.70 a share or to issue new shares.

An announcement on Tuesday (Sep 29) said that shareholders of Zheneng Jinjiang Environmental are entitled to either the cash consideration or the share consideration, but not both. Shareholders who do not indicate their choice will be deemed to have selected the cash consideration.

The offeror intends to delist the company from Singapore Exchange when the scheme becomes effective.

It believes that if the company is delisted, it will enjoy more flexibility in the running of the business and be able to focus on that; it would also be able to deploy capital resources more optimally, without the costs and restrictions related to maintaining a listing.

Zheneng Jinjiang Environmental has not tapped the equity capital markets to raise funds since 2018, and is unlikely to do so in the foreseeable future. The company’s listed status thus serves a limited purpose.

Jieneng Investment is the investment holding company incorporated in Hong Kong, specifically for shareholders to privatise the company.

The scheme consideration represents an attractive premium to historical market prices, said the offeror. The cash consideration represents a premium of about 50.5 per cent of the volume-weighted average price per share for the month leading up to and including Feb 11, 2026.

The offeror believes that this is an opportunity for shareholders to exit their investment for cash immediately. It has no plans to make major changes to existing businesses, to redeploy fixed assets or to discontinue hiring of the existing staff.

The scheme is subject to regulatory approvals by the Securities Industry Council and other regulators.

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There will be no adjustment to the scheme as a result of the payment of dividends, said the offeror. Shareholders will have to approve the board-recommended dividend of S$0.045 a share at an extraordinary general meeting (EGM) as soon as it is reasonably practicable following this announcement.

The dividend will be paid in two tranches, both at S$0.0225 a share, on a date to be decided after the EGM, and on the record date of Mar 31, 2027, for the later tranche.

Shares of Zheneng Jinjiang Environmental closed up 24.1 per cent or S$0.13 at S$0.67 on Tuesday.