Ranhill to dispose of unit for RM169.11 mln

PUTRAJAYA: Ranhill Holding Bhd’s wholly-owned unit, Ranhill Water (Cayman) Ltd (RWT Cayman) today signed a sales and purchase agreement (SPA) to divest 60 per cent stake in Ranhill Water (Hong Kong) Ltd (RWHK) to SIIC Environment Holdings Ltd (SIIC).

Under the agreement, the Singapore-listed SIIC would buy 60 per cent of RWHK, a wholly-owned unit of RWT Cayman, for 273.90 million renminbi (RM169.11 million).

Energy, Green Technology and Water Minister, Datuk Seri Panglima Dr Maximus Ongkili, witnessed the signing ceremony.

The SPA was signed by President/Chief Executive of Ranhill, Tan Sri Hamdan Mohamad, Director of SIIC, Feng Jun, and General Manager of SIIC, Xu Xiao Bing.

Hamdan said the transaction would not have any effect of the issued and paid-up share capital and the substantial shareholders’ shareholdings of Ranhill.

“The transaction signifies the beginning of an exciting strategic partnership with SIIC to pursue growth of Ranhill’s wastewater business in China, particularly in the industrial wastewater treatment sector.

“SIIC’s local knowledge and strong business alliances will support the joint-venture to access quality concession opportunities in a bigger market with competitive project financing,” he told reporters after the signing ceremony here yesterday.

Hamdan said Ranhill has been investing in China’s wastewater business for the past eight years and the time was right to monetise its investments while at the same time expanding the reach of the business.

“The transaction proceeds will be used as capital for Ranhill to venture into other new investment opportunities in the power sector, and the matching shareholder loans from SIIC would be used to expand the China water operations.

“It’s also a great opportunity for Ranhill to provide services to SIIC’s existing water and wastewater treatment plant by retrofitting,” he said.

Meanwhile, Executive Chairman of SIIC Environment Holdings Ltd, Zhou Jun, said as top-tier integrated player in China’s environmental industry, SIIC signed the agreement to seek strategic partnership to further its international trade expansion in Asean.

“We think Ranhill is a good partner to work with,” he said.

SIIC, an SGX-ST main boardlisted company which has over 80 water treatment and supply projects with a total design capacity of more than seven million tonnes/per day and four waste incineration projects across 15 municipalities and provinces, namely Shandong, Guangdong, Hubei, Hunan, Jiangsu, Shanghai, Zhejiang, Fujian, Guangxi, Ningxia, Henan, Liaoning, Shanxi, Sichuan and Heilongjiang. — Bernama