SINGAPORE - Mainboard-listed TEE International Ltd (TEE), Catalist-listed Advancer Global Ltd and a financial investor are acquiring privately held waste management provider Chiang Kiong Environmental for $18.5 million.
The amount will be paid by the shareholders of the joint-venture vehicle in proportion to their shareholding. The proposed acquisition is expected to be completed by Dec 29, they said in an exchange filing on Monday (Nov 20).
TEE, an engineering real estate and infrastructure group, will hold a majority stake of 50.1 per cent in the joint venture through its wholly owned subsidiary, TEE Infrastructure Private Limited.
Advancer Global, an integrated workforce solutions and services provider, will hold a 20.1 per cent stake through its wholly owned subsidiary, Advancer Global Facility Pte Ltd, while the independent third party financial investor, which is a business associate of TEE, will hold the remaining 29.8 per cent.
The proposed acquisition will also see the joint venture acquire Chiang Kiong subsidiaries Chiang Kiong Resources (Paper) Pte Ltd and Envotek Engineering Pte Ltd.
"We are excited with our participation in this strategic acquisition as it marks our inaugural collaboration with TEE Group and leapfrogs Advancer Global Group into waste management, which is a natural integration to our existing cleaning and stewarding services segment," said Mr Gary Chin, Advancer Global CEO and executive director.
Mr Edwin Neo, TEE's head of infrastructure, said: "We are elated to have Advancer Global Group partake in this joint venture to cement our strategic alliance. This acquisition complements TEE Infrastructure's business strategy of building capabilities within the water, power and environmental value chain.
"We firmly believe that both TEE and Advancer Global will be able to value-add to Chiang Kiong Group, in turn growing and expanding its business in the industrial and commercial environmental service space."
TEE and Advancer Global will keep shareholders updated on the progress and completion of the proposed acquisition.
TEE shares finished $0.001, or 0.5 per cent, lower at $0.199 on Monday. Advancer Global shares last traded at $0.305 on Nov 17.