SIIC to buy China-based water treatment business for $348.3 million

SINGAPORE - Mainboard-listed SIIC Environment Holdings plans to buy a China-based water treatment business in a deal valued at about 1.55 billion yuan (S$348.3 million) in cash and shares, the water specialist announced late Tuesday.

SIIC said it plans to buy all of Global Envirotech Investment, which in turn holds an indirect 92.15 per cent stake in Fudan Water Engineering and Technology Co, from Global Environment Investment. SIIC will pay 151.7 million yuan in cash and issue 1.56 billion new shares, or 16.3 per cent of the existing shares, at 13.2 cents apiece. The total consideration includes 479.18 million yuan that will be used to pay off an outstanding debt.

The issue price for the consideration shares represents a 12.2 per cent discount to the volume-weighted average price of SIIC shares on Tuesday. SIIC stock closed at 15 cents on Tuesday before the announcement.

BUSINESS TIMES