Citic offers to buy Singapore firm
Mainland firm wants to turn Singapore-listed company into its flagship environmental arm
Citic, the mainland's largest conglomerate, has offered to take a majority stake in Singapore-listed United Envirotech and turn it into its flagship in the water and environmental protection business, in a deal worth up to HK$7.52 billion.
The offer was made by CKM (Cayman), jointly owned by state-backed Citic and partner KKR China Water Investment Holdings, which is majority-owned by a fund managed by global private equity investment firm KKR.
Citic said in a filing to the Hong Kong stock exchange that investing in United Envirotech is a "unique opportunity for [it] to invest in a leading membrane-based water and wastewater treatment and reclamation solution provider with businesses mainly in the [mainland's] chemical, petrochemical and industrial park sectors".
The offer will consist of the acquisition of a majority stake in United shares through buying shares not already owned by CKM, the purchase of all bonds convertible into United shares owned by KKR China Water, followed by further subscription of United shares worth up to HK$898 million through a private placement.
The offer price for United shares is S$1.65 (HK$9.89) each, an 8.9 per cent premium to their last closing price.
United shares are currently suspended from trading.
