Zheneng Group acquires 29.79% stake in China Jinjiang Environment for $236m

Renewable energy/Illustration/ Internet Archive

China’s Zhejiang Provincial Energy Group (Zheneng Group) is acquiring 29.79% stake in private waste-to-energy operator China Jinjiang Environment Holding (CJE), owned by Dou Family through China Green Energy, according to a press statement.

Zheneng Group and the family signed a conditional sale and purchase agreement on 10 of June 2019, to buy 430 millions of ordinary shares in CJE for RMB 1.63 billion ($236.32 million).

The group will acquire the stake through its subsidiaries Zhejiang International and Zheneng Capital.

Dou Family indirectly owns 55.61% stake in CJE through China Green Energy and Win Charm Limited, the press statement explained. Dou Family, namely Dou Zhenggang and his spouse Wei Xuefeng, are the second largest controlling shareholder of CJE who each hold around 25.82% in the company.

Zheneng Group is the Chinese state-owned provincial energy company involved in energy-related businesses, including electric power source construction, electric and thermal power generation, development, trading and transportation of petroleum, coal and natural gas, energy services and energy finance. The group noted RMB 106 billion of net asset value by end of 2018.

Meanwhile CJE was established in 1998, and claims itself as the leading waste-to-energy (WTE) operator in the country, with primary focus on the planning, development, construction, operation and management of WTE facilities.

Aside from China, CJE also has presence in India, Brazil, Singapore, Indonesia and Germany. The company operates 20 WTE facilities and five resource recycling projects in 12 provinces in China with total installed capacity of 29,240 tons per day. CJE is listed in Singapore Stock Exchange (SGX) since 2016.