CITIC Envirotech (formerly: United Envirotech)

[yawnyawn]

CITIC and KKR have make a preconditional voluntary offer for the company, with offer price of $1.65

The company is gaining an edge on the WWT competition, with CITIC on board.

(not vested)

http://infopub.sgx.com/FileOpen/Pre-cond...eID=324039

Citic is paying 2.5x book for Utd Envtech. This is a much better deal for existing shareholders as compared to the one Hankore received from CEI.

Utd Envtech will still be listed on SGX post this takeover.

[greengiraffe]

http://www.businesstimes.com.sg/companie...envirotech

Citic teams up with KKR to buy United Envirotech
By
Andrea Sohsandrea@sph.com.sg@AndreaSohBT
citiccon12.jpg CHINESE conglomerate Citic, in a bid to move into the fast-growing environmental-protection sector in China, is partnering American private-equity firm KKR to buy at least a majority stake in wastewater treatment firm United Envirotech Ltd (UEL). PHOTO: BLOOMBERG
13 Nov5:50 AM
Singapore

CHINESE conglomerate Citic, in a bid to move into the fast-growing environmental-protection sector in China, is partnering American private-equity firm KKR to buy at least a majority stake in wastewater treatment firm United Envirotech Ltd (UEL).

The offer to buy the shares of the Singapore mainboard-listed firm at S$1.65 a share in cash - a premium of 12.6 per cent over its last transacted price of S$1.465 on Nov 6 - values UEL at about S$1.9 billion.

With this, Citic will become the controlling shareholder of UEL; KKR, now the single largest shareholder, will slip into second place.

Citic, which will extend a loan of S$1.27 billion to fund the special-purpose vehicle used for this acquisition, plans to use the firm as a flagship unit in the water and wastewater treatment business.

Its vice-chairman and president Wang Jiong said: "Our investment in UEL provides us a strong platform to develop in China's water and wastewater treatment sector. Environmental protection is a top priority for China, and Citic foresees not only commercial opportunity, but also societal benefit from this investment."

UEL provides membrane-based water and wastewater-treatment solutions to businesses in China's chemical, petrochemical and industrial parks.

The deal includes an offer to KKR for its convertible bonds worth S$44 million and due in 2016, representing about 10.2 per cent of the enlarged share capital of UEL. KKR had on Tuesday exercised its right to convert another US$18.7 million into new shares, boosting its post-conversion stake in UEL to 29.7 per cent.

With KKR's stake and commitments from UEL's chief executive officer Lin Yucheng, its chief investment officer Pan Shuhong and independent shareholders, the offer has already secured support representing 51 per cent of UEL's share capital.

After the close of the offer for the shares and the convertible bonds, Citic and KKR will also subscribe for between 30.3 million and 90.9 million new UEL shares at S$1.65 apiece. The funds will be used in case holders of the firm's medium-term notes decide to redeem their bonds with the change in control of the firm, and for the acquisition of wastewater treatment plants and working capital.

All told, if the placement is approved by UEL shareholders, Citic will end up holding between 50.6 and 67.4 per cent of UEL; KKR will hold between 23.8 and 36.2 per cent, and Dr Lin and Ms Pan will own the balance.

The deal is conditional on the approval of five government agencies in China, which could take four to six months.

The consortium plans to keep UEL listed; this is to allow shareholders to ride on the future growth of the industry, said UEL's executive director Chong Weng Chiew.

There are no plans to introduce changes to the business, although a comprehensive review of UEL will be done after the close of the offer. Dr Chong told reporters on Wednesday that the offer has come at the right time for the firm: "Our industry favours very large players, given the increased participation of state-owned enterprises in this space. They will offer an extensive network in China, and their expertise and track record will be very helpful for our development in future."

There will also be opportunities to tap Chinese onshore financial institutions, which will benefit the firm, given the capital-intensive nature of its business, he added.

The environmental protection industry, with a compounded annual growth rate of more than 15 per cent a year, is one of seven strategic industries the Chinese government is nurturing. Industry players are expecting a wave of investments in environmental-protection projects, as a significant part of the 430 billion yuan earmarked for the sector under China's 12th Five-Year Plan ending next year has not yet been spent.

[CityFarmer]

The link with Citic will open-up the opportunities with China SOEs, which is critical for WWT business...

(not vested)

United Envirotech invests $24 million in JV to build membrane manufacturing facility in Beijing

SINGAPORE (Nov 24): United Envirotech ( Financial Dashboard) has signed an agreement with Beijing Drainage Equipment Co. (BDE) to set up a 49:51 joint venture (JV) company with a capital of RMB48 million ($9.6 million).

The JV will invest RMB120 million ($24 million) to set up a new state-of-the-art manufacturing facility in Beijing with an initial capacity of assembling 2 million sqm of membrane fibres into membrane modules.

Memstar, United Envirotech’s wholly owned subsidiary, will sell membrane fibres produced in its Singapore plant to the JV.
...
http://www.theedgemarkets.com/sg/article...ty-beijing

[CityFarmer]

VOLUNTARY CONDITIONAL OFFER for the company, at offer price of $1.65. The offer price is close to PB of 2.5, with NAV of approx $0.67. Net gearing is slightly above 50%.

The total asset is approx $1.24 per share. Is the offer fair?

http://infopub.sgx.com/FileOpen/UEL%20VG...eID=337505

(not vested)

[snapsnap]

http://www.theedgemarkets.com/sg/article...-contracts

CITIC Envirotech gains after announcing possible contracts
By PC Lee / theedgemarkets.com   | November 19, 2015 : 1:58 PM MYT   
Printer-friendly versionSend by emailPDF version

SINGAPORE (Nov 19): CITIC Envirotech ( Valuation: 0.80, Fundamental: 0.80) is up 4.4% to $1.54 after the company, which does most of its business in China, says it is in "advanced negotiation" for water supply, wastewater treatment and recycling projects valued at about 1 billion yuan ($156 million).

The water-treatment firm didn't provide details about the location of the prospective projects. Citic Envirotech says there is no certainty that the discussions would lead to any definitive agreements and advises investors to deal in the company's shares with caution.

However, investors likely expect a big contract win announcement soon.
CITIC Envirotech is outperforming the 1.1% gain by the local benchmark Straits Times Index.

[snapsnap]

23 Nov, 2015 - http://www.theedgemarkets.com/sg/article...ming-order
CITIC Envirotech gains after confirming order

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Changed its name to CITIC Envirotech Ltd

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The company is proposing to split every 1 existing ordinary share in its share capital into 2 shares.

As at today, the company has an issued and paid-up share capital of S$542,231,313.50 comprising 1,127,927,588 shares. Upon the completion of the share split, the number of issued shares will increase to 2,255,855,176 Shares, assuming that no further shares are issued on or prior to the completion of the share split.

More details in http://infopub.sgx.com/FileOpen/CEL-Annt...eID=430946

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CITIC Envirotech Led Consortium Won The Tender For A RMB 3.2 BILLION PPP Project In Shantou City, Guangdong Province, China

CITIC Envirotech Ltd. ("CEL") is pleased to announce that a consortium comprising CEL, Guangdong Keying Zhiran Environmental Co., Ltd and Zhongsheng Technology (Jiangsu) Co., Ltd was awarded a RMB 3.2 billion PublicPrivate-Partnership (PPP) project in Shantou Chaonan, Guangdong Province, China.

Backed by the local government, Guangdong Keying Zhiran Environmental Co., Ltd  is an environmental company set up by the Shantou Printing and Dyeing Association comprising members of the printing and dyeing enterprises.

More details in http://infopub.sgx.com/FileOpen/CEL.Annt...eID=432146

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CITIC Envirotech Ltd secured its first BOO Project for a 95,000 tons/year Hazardous Waste Treatment Project in Rizhao City, Shandong Province, China

CITIC Envirotech Ltd. ("CEL") is pleased to announce that the Company has recently secured its first BOO hazardous waste treatment project in Rizhao City, Shandong Province, China with the total investment of RMB 240 million.

The project involves the design, construction and operation of a 95,000 tons/year hazardous waste treatment facility which consists of a 25,000 tons/year incineration plant, a 30,000 tons/year physical-chemical treatment plant and a 40,000 tons/year landfill. The project will commence immediately and is expected to complete in 12 months.

CEL will form a 70:30 joint venture company with Shandong Zhengtian Environmental Protection Technology Co. Ltd ("Shandong ZT") to undertake the project. When completed, the hazardous waste treatment facility will serve the industries in Rizhao City, Weifang City, Linyi City as well as northern Jiangsu Province, including Lianyungang, Yancheng, Xuzhou and other regions.

Shandong ZT is an environmental company dedicated towards the prevention and control of atmospheric pollution, heavy metal wastewater treatment and solid waste management. The company's main projects include environmental impact assessment, clean technology, sewage treatment, air treatment, organic waste treatment and other environmental projects.

More details in http://infopub.sgx.com/FileOpen/CEL.Haza...eID=432484