Citic Envirotech to acquire 65 percent stake in Nantong Guoqi

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Citic Envirotech said on Wednesday that it entered a deal to acquire 65 percent of Nantong Guoqi Environmental Protection Technology from Nantong Xinyuan Investment Development for 81 million yuan after winning an open tender.

Nantong Guoqi owns a 25,000 tons a year hazardous waste-treatment facility, located in the Qidong Binjiang Fine Chemical Industry Park in Qidong County, it said in the filing to SGX after the market close on Wednesday. The facility, which has been completed and operational since August, has an incineration plant, it said.

Citic Envirotech said the cash injection will come from internal resources.

Existing shareholders SITA Asia Pacific and Qidong Binjiang Fine Chemical Industry Park Development and Construction will hold 25 percent and 10 percent of Nantong Guoqi, respectively, Citic Envirotech said.

SITA Asia is an environmental company established by Suez to invest in Asia, while Qidong Binjiang is a development and construction company under the jurisdiction of the Qidong Binjiang Park Management Committee, it said.

The seller of the stake, Nantong Xinyuan, is a wholly owned subsidiary of Nantong State-owned Assets Investment Holdings, which is primarily involved in investment and consulting services, it said.

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