C&G Environmental proposes to sell off remaining businesses, become cash company

SINGAPORE - Mainboard-listed waste to energy company C&G Environmental Protection Holdings said in a stock exchange filing on Monday (Aug 29) that it is proposing to sell the remainder of its businesses to two different Chinese business partners.

On Aug 25, it signed an agreement to sell its principal operating and wholly-owned subsidiary, C&G Environmental Protection (Thailand) Company Limited, to New Sky Energy (Thailand) Company Limited, for RMB187.7 million yuan (S$38.3 million).

New Sky had also agreed to assume and discharge, for and on behalf of C&G Thailand, all the its debts as at Feb 29 amounting to about RMB312.3 million; and all payables arising from all uncompleted construction contracts entered into by C&G Thailand.

C&G Environmental has also entered into a conditional sale and purchase agreement to sell all its group companies other than C&G Thailand for HK$600 million (S$105.3 million) to Ahead Auto Limited .

C&G Environmental said the proceeds from the two sales represents an imputed value of 19.7 Singapore cents per share to existing shareholders of the company and a premium of approximately 74 per cent to the volume weighted average trading price for trades done on Aug 24.

C&G Environmental closed at 12.7 Singapore cents on Friday. Its net asset value as at end-June was 125.34 HK cents, or 22 Singapore cents a share.

The net proceeds will be distributed to shareholders as a special dividend and a share premium account reduction which shall be tabled for shareholder's approval at a special general meeting.

C&G Environmental said its board is of the opinion that it is in the interest of its shareholders to maintain the listing status of the company following the completion of the proposed disposals as a cash company for a period of 12 months, as additional value may be created for shareholders if the company is able to acquire a new business during this period.

If the company is unable to acquire a suitable new business, it will be delisted from the Singapore Exchange.