SINGAPORE - Entities linked to China's largest conglomerate Citic as well as US private equity giant KKR have joined forces to buy out Singapore-listed United Envirotech in a deal that values the firm at roughly $1.9 billion.

A consortium comprising Citic Environment and KKR China Water Investment Holdings have made an offer to buy up the shares of United Envirotech at $1.65 per share in cash, the company said on Wednesday afternoon.

United Envirotech is a China-based waste water management firm which uses membrane technology.

The deal will see KKR accepting the consortium's offer for its shares and convertible bonds.

After the conversion, the consortium will own 29.65 per cent of the company plus convertible bonds that if also converted will give it another 10.23 per cent in United Envirotech. The consortium will also subscribe to new placement shares that will raise its stake further. By the time the offers for the shares and the convertible bonds are launched, the consortium will control 50.99 per cent of United Envirotech.

After the deal is completed, Citic Environment will be the largest shareholder in United Envirotech followed by KKR China Water.

The announcement said that the transaction will give the new majority shareholders a chance to participate in the growth of the market leader. Citic Environment also plans to develop its business in this sector.

The shareholders intend to keep the company listed.