SIIC Environment Expands China Water Portfolio With RMB270 Million Anshan Acquisition

SIIC Environment Holdings ( (SG:BHK) ) has issued an update.

SIIC Environment’s controlling subsidiary Longjiang Environmental Group has agreed to acquire 100% equity in Anshan Qingchang Water Affairs and Anshan Qinglang Water Affairs for a total consideration of RMB270 million. The two target companies, which will become wholly owned subsidiaries and be consolidated into the group’s accounts after completion, have registered and paid-in capital of RMB92.35 million and RMB102 million respectively.

The price was set with reference to independent valuations of RMB153 million and RMB123 million using an income-based WACC model, and was negotiated on normal commercial terms between the parties, who are not related. SIIC Environment will fund the acquisition entirely from internal resources, paying in three tranches including a 10% deposit and an 80% installment backed by a demand bank guarantee, a structure the board says is fair and beneficial to the company and its shareholders by expanding its water portfolio.

More about SIIC Environment Holdings

SIIC Environment Holdings Ltd. is an integrated environmental services provider focused on water and wastewater treatment, operating through subsidiaries across mainland China. Listed in Hong Kong and Singapore, the group develops, owns and manages municipal water assets, targeting stable, long-term utility-style cash flows in the Chinese environmental infrastructure market.

For detailed information about BHK stock, go to TipRanks’ Stock Analysis page.