Investment holding company CITIC Envirotech said it will acquire 60 percent stake in environmental and utility firm CITIC Qingyuan for 378 million yuan (S$78.3 million).
The current owner of CITIC Qingyuan, who is an individual shareholder, holds the remainder 40 percent stake.
CITIC Envirotech will fund the acquisition from the proceeds of the issuance of the US$180 million senior perpetual securities pursuant to its US$750 million multicurrency perpetual securities issuance programme and bank financing.
The acquisition of a fully-integrated project to provide water, wastewater treatment, steam and power generation is in line with the company's key strategic thrust to embark on the Circular Economy initiative, CITIC Envirotech said in a statement on Wednesday.
China-based Qingyuan City supplies industrial water, steam and electricity and provides wastewater treatment and recycling services to the textile industrial park.
The existing treatment capacities for the wastewater treatment and water supply is 22,000 cubic metre per day each, while electricity supply is at 300,000 kilowatthours per day.
Due to the rapidly expanding industrial park, it is expected that CITIC Qingyuan will immediately undertake phase two of the project to expand its environmental facilities to meet the increasing demand, CITIC Envirotech said.
Shares in the company were unchanged at S$0.715 on the Singapore Exchange. The stock has risen 2 percent so far this year.
