Beijing Enterprises Water to Buy Water, Sewage Projects in China
Stock Chart for Beijing Enterprises Water Group Ltd (371)
Beijing Enterprises Water Group Ltd. (371) will pay 955 million yuan ($156 million) to buy nine water and sewage treatment projects in China from Malaysia’s Salcon Bhd. (SALC) to add total design capacity of 1.25 million tons a day.
The projects are in Jiangsu, Zhejiang, Shandong and Fujian provinces and have current daily operational capacity of 1.06 million tons of water and 90,000 tons of sewage, the company said in a statement to the Hong Kong Stock Exchange yesterday.
The acquisition will “quickly” increase its water treatment capacity in China, cementing its market-leading position, the company said in the statement. Beijing Enterprises Water is backed by the municipal government and has operations in China, Malaysia and Portugal.
The nine target projects had after-tax profit of 91.1 million yuan in 2012, rising from 44.6 million yuan in 2011, according to the filing.
Beijing Enterprises Water earlier this month completed the 1.35 billion-yuan acquisition of a pair of Standard Water Ltd. units involved in 36 water projects in Chinese provinces including Shandong and Shanxi.
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