Ranhill to sell HK unit stake

PETALING JAYA: Ranhill Holdings Bhd plans to sell its 60% stake in Ranhill Water (Hong Kong) Ltd (RWHK) to Singapore-listed SIIC Environment Holdings Ltd for 273.9 million yuan (RM167 million) cash.
In a filing with the stock exchange, Ranhill said its subsidiary Ranhill Water Technologies (Cayman) Ltd had on Aug 31 entered into a term sheet with SIIC for the proposed divestment.
Both parties are to enter into a sale and purchase agreement within 30 days from the date of signing the term sheet.
SIIC has also agreed to provide a US$30 million (RM122.2 million) shareholder’s loan to RWHK, proportionate to its eventual shareholding, upon completion of the proposed divestment.
Ranhill president and CEO Tan Sri Hamdan Mohamad said the stake disposal is in line with the group’s intention to seek strategic partnership to further its business expansion in China.
He noted that Ranhill could tap into SIIC’s local knowledge and strong business alliances to help facilitate the procurement of industrial wastewater concessions, tariff adjustments and arrange for project financing with competitive terms.
“This is not just a divestment of asset but also a formation of strategic partnership with SIIC and its subsidiaries,” he stressed.
SIIC has over 80 water treatment and supply projects, and four waste incineration projects across 15 municipalities and provinces in China.