NWS Holdings Ltd. said its joint venture with Suez Environnement will sell its stake in Cia. de Electricidade de Macau, the city’s power provider, to a Chinese state-owned company for $612 million.
Sino-French Holdings Hong Kong Ltd., the joint venture, will sell its 90 percent holding of Sino-French Energy Development Co. plus shareholder loans to a unit of Nam Kwong Group Co., according to a Hong Kong stock exchange filing yesterday. Sino-French Energy in turn owns a 42.2 percent stake in Macau Power.
The sale gives China’s government a stake in the power provider to Macau, the only city in the nation where casino gambling is legal. NWS, the transportation unit of Hong Kong billionaire Cheng Yu-tung’s New World Development Co., said the disposal will allow its venture to focus on the water industry.
Sino-French Holdings also granted an option to a company owned by gambling tycoon Stanley Ho pledging to buy a 9 percent stake in Macau Power from Ho’s company, NWS said.
Provided Ho’s company exercises the option, Sino-French Holdings will retain a 3.8 percent stake in Macau Power and NWS will book a HK$1.5 billion ($194 million) gain on the transactions, according to the filing.
Paris-based Suez is Europe’s second-biggest water company by market value.