SIIC acquires China water treatment firm for $250m

SIIC's logo, from website

SIIC Environment Holdings Ltd has proposed to acquire China-based Fudan Water Engineering & Technology Co water treatment firm at a price tag of RMB1.55 billion ($250 million), according to an announcement the company made on the Singapore Exchange.

The amount includes RMB479.2 million of debt held by the target company’s controlling shareholder, which SIIC agreed to pay off.

SIIC will pay about 10% of the total consideration in cash and the rest in shares through the issuance of 1.56 billion shares at 13.2 cents each, a discount to the stock’s March 24 closing price of 15 cents.

The company, a water treatment and management specialist, will take a loan from its major shareholder Shanghai Industrial Holdings to fund the cash portion of the payment.

SIIC believes that the acquisition will be in the best interests of the group, which has been an active investor and operator of water and environmental related assets. The target company, Fudan Water had earnings of more than RMB89.4 million last year.

Fudan Water, has 10 water treatment projects in Shanghai city and the provinces of Jiangsu, Zhejiang and Guangdong provinces in China and the proposed acquisition is a strategic addition and complementary to the group’s existing business and operational capabilities, it said in a regulatory filing.

“In addition, the location of the target group has a strategic significance to the group as it would potentially serve as a platform for the group to secure more opportunities in the respective regions,” SIIC added.

SIIC Environment shares ended flat at 15 cents yesterday.

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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).

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  • 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.