Singapore, October 22, 2010 - Sembcorp Industries announces that it is acquiring all remaining shares in The China Water Company (CWC) not already held by Sembcorp’s municipal water subsidiary, Cascal. The company signed a sale and purchase agreement today with CWC’s only other shareholder, Waterloo Industrial Limited (“Waterloo”), for its 13% stake in CWC.
The consideration for the 13% shareholding in CWC (including the assignment of Waterloo’s existing shareholder’s loan to CWC) is the equivalent of US$12.8 million (S$16.7 million) in Sembcorp Industries shares, amounting to a total of 3,630,192 new shares to be issued by Sembcorp. The consideration was arrived at on a willing buyer willing seller basis, taking into account the net tangible asset value of CWC Group.
Upon completion of the transaction, CWC will become a 97.66% subsidiary of the Sembcorp Group. CWC invests in and operates municipal water facilities in six locations in China: Fuzhou, Qitaihe, Xinmin, Yancheng, Yanjiao and Zhumadian.
This acquisition is not expected to have a material impact on the earnings and net asset value per share of Sembcorp Group for the financial year ending December 31, 2010.