CNA Group unveils plans to spin off waste water treatment unit

SINGAPORE - Mainboard-listed CNA Group is planning to spin off its waste water treatment subsidiary and list it separately on the Catalist board, the systems integrator said today.

It is CNA Dongying Water, which core project is its industrial waste water treatment plant in the Dongying Economic Development Zone in Dongying, Shandong.

The group said the listing will increase the overall financial capacity and flexibility of the group and allow it to focus on the growth of its other strategic business unit.

"(It) will enable the group to increase the scale of its principal businesses going forward and continue to participate in the growth of the water treatment business with a more optimal capital structure for the foreseeable future."

A new investment holding company will be incorporated as a listing vehicle to hold CNA Dongying. The new company will raise funds from pre-initial public offering (IPO) to provide for CNA Dongying's working capital needs and the expenses related to listing, the group said.

It said it plans to retain a beneficial interest in at least 40 per cent of the issued share capital of the new investment holding company post-listing.

The group said it is in discussions with potential pre-IPO investors for the fund-raising, and also with potential sponsors for the planned listing.

It added that as the planned listing is in its initial stage.