United Envirotech (UEL), a water treatment and recycling solution provider in China, yesterday announced that investment firm KKR has agreed to invest a further US$40 million (S$48.8 million) in the company.
KKR subscribed for US$113.8 million UEL convertible bonds in October 2011 to support the company's business expansion and has been working with the firm to capture the growth opportunities in China's water industry.
The latest investment priced UEL shares at 50 cents apiece, representing an 8.5 per cent premium to 46.1 cents, being the volume weighted average price for the last 30 trading days.
The proceeds will be used to fund the acquisition of water treatment plants, upgrading of existing plants and as working capital.
The investment is expected to conclude by March and is subject to certain conditions, including approval from UEL shareholders.