China Everbright Water’s indirect wholly-owned subsidiary, Beijing Everbright Water Investment Management, has successfully won the bidding in the public tendering held by Tianjin Property Rights Exchange to purchase a 65% stake in Tianjin Binhai New Area Huantang Sewage Treatment for RMB666.3 million ($136.3 million).
On Jan 10, Beijing Everbright says it has been recognised as the transferee of the 65% equity interest.
Both companies have not yet signed the equity transfer agreement, and will be entering into the formal agreement once they have negotiated the terms, including the timing and manner of payment and conditions pertaining to the potential transaction.
The projects owned by Tianjin Binhai have an aggregate daily water treatment capacity of 220,000 tonnes, including the Beitang Waste Water Treatment Plant with a daily waste water treatment capacity of 150,000 tonnes.
Tianjin Binhai also owns the Beitang Reusable Water Plant with a daily reusable water supply capacity of 45,000 tonnes and Gangdong Waste Water Treatment Plant with a daily waste water treatment capacity of 25,000 tonnes.
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According to the statement, the potential transaction serves to expand the presence and influence of the China Everbright group in Tianjin Municipality.
The potential transaction provides a “solid foundation” for further waste water treatment projects to be undertaken by the group.
According to China Everbright, the directors consider that the potential transaction will be entered into on “normal commercial terms”.
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“Taking into account the above reasons, the participation in the public tendering and the final bidding price are fair and reasonable and in the best interests of the company and its shareholders as a whole,” it says.
Shares in China Everbright closed flat at 22.5 cents on Jan 8.
