RRJ, IFC invest $85m in China Everbright Water

DAH, a wholly-owned subsidiary of RRJ, will buy around 70.9 million shares at S$0.94 apiece for a total consideration of S$66.7 million, while IFC will pick up 49.7 million shares at the same price. They will hold stakes of 2.72% and 1.91%, respectively, in Everbright Water, according to a regulatory filing.

As a result of the transaction, Everbright International's majority shareholding in Everbright Water will be diluted from 78% to 74.4%. RRJ is also an investor in Everbright International, having paid HK$2.7 billion ($349 million) for a 7.85% stake in December 2013.

Everbright Water has a range of projects across north and central China, including waste-to-energy, methane-to-energy, biomass power generation, solar energy, industrial solid waste and waste treatment, and wastewater treatment and reusable water. It also has assets in Germany.

The company reported turnover of HK$5.32 billion in 2013, up from HK$3.41 billion the previous year. Net profit rose from HK$1.15 billion to HK$1.36 billion over the same period. For the first six months of 2014, turnover and net profit were HK$2.94 billion and HK$837.2 million, respectively.

Everbright Water listed in Singapore last December through a reverse takeover of HanKore Environment Tech Group. HanKore absorbed Everbright Water's assets for S$1.2 billion via an allotment of new shares.

"The introduction of IFC and RRJ, two internationally well-known investment institutions as the strategic investors, does not only optimize the shareholding structure of Everbright Water, but will also strengthen and advance the future development of Everbright Water," Xiaoping Chen, CEO of Everbright International, said in a statement.

RRJ is investing in Everbright Water via its second fund, which reached a final close of $3.5 billion in early 2013. The private equity firm is said to be targeting more than $4 billion for its third vehicle and has already accumulated in excess of $3 billion in soft commitments.

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• Topics
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