SINGAPORE (Apr 15): TEE International is proposing a spinoff of its infrastructure business which will be listed on the Catalist board of the Singapore Exchange.
According to its filing on Monday, the spinoff group will consist of a 50.1% stake in G3 Environmental Private Limited, which offers a full suite of waste management solutions, including onsite and offsite waste management, collection and transport of waste, and processing of recyclables such as paper and plastics.
The spinoff group will also hold a 21.05% stake in PowerSource Philippines Distributed Power Holdings, Inc., which plans to expand its power business by exploring opportunities in the renewable energy segment and owns a 25MW greenfield thermal hybrid power plant in the Philippines.
In addition, it will also have a 49% stake in Global Environmental Technology Co., one of Thailand’s largest wastewater treatment companies which operates two treatment plants including Bangkok’s first underground plant in Bang Sue.
TEE International says it intends to maintain a controlling interest in the spinoff group following the proposed transactions. The group also says the spinoffs will enable the company to unlock the value of the spinoff group.
“The spinoff group will be able to independently raise new funds from the capital market, enabling the spinoff group to fund its business expansion independently of the company and the company to re-deploy its financial and other resources to grow its other businesses,” says TEE International.
The group has engaged professional advisers PrimePartners Corporate Finance as issue manager and sponsor and Rajah & Tann Singapore LLP as Singapore counsel to deal with the proposed listing.
Nevertheless, the group warns there is no assurance that the spinoff and listing will materialise in due course.
As at 2.38pm, TEE International shares are up 1.8% to 11 cents.
