KKR, CITIC offer $1.5b for United Envirotech

US headquartered private equity firm KKR & Co LP and Chinese state-backed conglomerate CITIC Ltd have offered to buyout Singapore water treatment company United Envirotech Ltd (UEL).

The offer values United Envirotech, which has been trading on the Singapore Stocks Exchange since April 2004 at S$1.9bn ($1.52bn).

KKR is already the top shareholder in United Envirotech and owns 26% of the company, but post the transaction, CITIC will become the largest shareholder in the Singaporean company.

“The consortium intends to maintain the listing of UEL post transaction,” CITIC and KKR said.

“The transaction will also provide capital for UEL’s further expansion. With CITIC and KKR’s extensive networks and resources, it is envisaged that a further range of opportunities would be opened up for UEL,” both companies added in the statement.

CITIC, with a  market cap of about $43.2 billion, is China’s largest conglomerate and its businesses include financial services, resources and energy, manufacturing, real estate and infrastructure, engineering contracting among others, and it has about 120,000 employees on its roles.

United Envirotech had announced in July this year that it was in talks with a potential buyer.

“Our investment in UEL provides us a strong platform to develop in China’s water and wastewater treatment sector.” said Wang Jiong, president of CITIC. “Environmental protection is a top priority for China, and CITIC foresees not only commercial opportunity but also societal benefit from this investment,” he added.

Commenting on the joint investment, KKR’s Co-Founder, Co-Chairman and Co-CEO Henry Kravis said, “We are pleased to announce the formation of our partnership with CITIC. It is a world-class company and our experienced team on the ground in China will also leverage KKR’s global expertise and experience to make this a highly successful endeavor.”

If successful, this will mark KKR’s second major deal in Singapore this fiscal. In May this year, the PE firm said it would spend S1.1 billion to buyout Singaporean packing company Goodpack Ltd.

Image:Freedigitalphotos.net

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.