BEIJING (BLOOMBERG) - Beijing Capital Group is considering selling its waste management business in Singapore for as much as US$500 million (S$683.9 million), according to sources familiar with the matter.
The state-owned Chinese firm is in talks with advisers about working on the potential divestment of ECO Special Waste Management, said the sources, who asked not to be identified as the information is private.
Deliberations are at an early stage and Beijing Capital could decide against selling the business, they said. A representative for Beijing Capital did not immediately respond to requests for comment by phone and e-mail.
The company is also exploring the sale of a New Zealand-based unit, Beijing Capital Waste Management NZ, Bloomberg News reported in August.
Waste recycling businesses have become increasingly popular among investors due to their strong cash flow as well as their environmental benefits. Macquarie Group's infrastructure unit completed a deal in August to buy Australian waste management firm Bingo Industries for about US$1.9 billion including debt. Buyout firm Platinum Equity bought Spanish waste management company Urbaser from Chinese environmental services group China Tianying at an enterprise value of about US$4.2 billion, finalising the deal last month.
Beijing Capital acquired ECO Special Waste Management for $246 million in 2015. Founded in 1997, the Singapore firm provides services managing industrial and commercial waste, sludge treatment and specialised chemical recovery, according to its website.