RRJ Capital Buys Everbright International Stake for $350 MillionCathy Chan and Fox Hu
RRJ Capital Ltd., run by former Goldman Sachs Group Inc. partner Richard Ong, spent $350 million to buy a stake in renewable-energy project developer China Everbright International Ltd.
The private-equity fund bought 318.4 million Everbright International shares, equal to a 7.85 percent stake, at an average price of HK$8.52 apiece on Dec. 11, according to a Hong Kong stock exchange filing. Everbright International announced that day it will sell 430 million shares to raise HK$3.66 billion ($472 million).
China’s government, seeking to tackle the pollution that’s choking Beijing and other cities, is increasingly promoting cleaner-burning natural gas, as well as wind and solar energy, to produce electricity and reduce carbon emissions. The investment is RRJ’s second in China’s environmental industry, following its purchase of a 5.2 percent stake in Singapore-listed SIIC Environment Holdings Ltd. in October.
Everbright International shares have soared 140 percent this year in Hong Kong to a record, pushing the company’s market value to HK$42.1 billion. The stock fell 1.9 percent today to HK$9.39 as of 10:31 a.m. local time.
RRJ raised $3.6 billion for its second fund in May, focusing on China and Southeast Asia, Ong, the fund’s co-chairman, said in a phone interview. Including the Everbright International stake, the fund has invested $925 million, Ong said.
The fund is also run by Ong’s brother Charles, a former senior managing director of special projects at Temasek Holdings Pte., Singapore’s state-owned investment company.
SIIC, a Chinese water treatment company, sold 3.1 billion new shares at S$0.085 each, raising S$263.5 million ($210 million). China Investment Corp., the nation’s sovereign wealth fund, and Shanghai Industrial Holdings Ltd. also invested in that offering, according to a statement from the company. RRJ paid S$38.3 million for its stake.
China, which accounted for about four-fifths of the growth in annual carbon dioxide emissions in 2002-2012, is adding renewable power and boosting energy efficiency as it expands climate-protection measures, Christoph Bals, director of Bonn-based research group Germanwatch, said last month.
China is No. 46 on Germanwatch’s Climate Change Performance Index, which ranks the world’s 58 biggest emitters. Denmark tops the index, followed by the U.K. and Portugal, mainly because of their efforts to expand renewable energies and increase efficiency.