Malaysia Sovereign Wealth Fund Buys 4.95% Stake in Beijing WaterChong Pooi Koon
The Malaysia state investment fund Khazanah Nasional Bhd acquired almost 5 percent of Beijing Enterprises Water Group Ltd. for $152 million to expand in China, making it the company’s third-largest shareholder.
Beijing Enterprises Water plans to use the net proceeds for working capital, the sovereign wealth fund said today in a statement. The water-treatment group announced 400 million new shares would be issued at HK$2.95 each to Mount Reskit Investments Ltd., a unit of Khazanah Nasional, last month.
The Malaysian investment is taking place as China faces rising demand for water, in quantity and quality, and water pollution and scarcity issues become more acute due to population growth and urbanization, the fund said.