China Jinjiang confirms Zheneng Group to acquire controlling stake

China yuan coins

China Jinjiang Environment confirmed Wednesday Zheneng Group will acquire a controlling stake in the waste-to-energy player after Dou Zhenggang, Wei Xuefeng, and their daughter, Jennifer Wei, agreed to sell 430 million shares for 1.63 billion yuan (S$332.49 million or US$236.48 million).

“Jinjiang Environment believes that it can work together with Zheneng Group to promote the ever-sustainable green transformation of the economy, and build a beautiful Chinese homeland,” the company said in a filing to SGX.

The shares, representing a 29.79 percent stake, will be sold to Zhejiang International and Zheneng Capital, which are both controlled by Zhejiang Provincial Energy Group, or Zheneng Group, China Jinjiang said.

The Dou and Wei family currently indirectly holds 55.61 percent of the interest in China Jinjiang via two companies, and after the deal is completed, Dou and Wei Xuefeng will be the second largest controlling shareholders with around 25.82 percent, the filing said.

Zheneng Group is a state-owned provincial energy enterprise, mainly involved in energy-related businesses such as electric power source construction and trading and transportation of petroleum, coal and natural gas, the filing said.

“As one of the largest state-owned enterprises in the Zhejiang Province, Zheneng Group has vast capabilities across the entire energy generation value chain,” Wang Yuanluo, chairman of Jinjiang Environment, said in the statement.

“We look forward to working closely with our new shareholders, whose resources and strong financial expertise will facilitate Jinjiang Environment’s financing and future development, propelling us closer to fulfilling our vision to become a global leader in the WTE industry,” she added.

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