30/9/2019 – SIIC Environment Holdings, a top-tier player in China’s water and environmental market, announced on Monday that it has partnered Baowu Environment to form a joint venture (JV) company with 1.1 billion yuan (about US$154.5 million) in registered capital.
Baowu Environment is an environment pollution treatment company and a member of the China Baowu Steel Group Corporation that is committed to ecological and sustainable development
Incorporated in China on September 27th, the joint venture was thereby known as Shanghai SIIC Baojin’gang Environmental Resources Technology Co Ltd.
Under the shareholders agreement, SIIC will take a 60 percent equity interest worth 660 million yuan (about US$92.7 million) through the group’s 70 percent indirectly-owned unit SIIC Yangtze Delta. Meanwhile, Baowu Environment will own the remaining 40 percent stakes.
Its formation was intended to let SIIC Environment expand its waste-to-energy (WTE) business and explore potential WTE business opportunities in Shanghai. The JV will also allow the group to better serve urban industrial zones in functional transition and escalation.
The joint venture business activities will include power generation, waste management, and the processing and sale of slag products, which is a glass-like by product left over during the separation of molten steel from impurities in steel-making furnaces.
SIIC Environment added that its directors – which consist of its independent non-executive directors – believe the agreement is on “normal commercial terms” and “fair and reasonable.”
The deal is also not expected to have a material effect on the net tangible assets or earnings per share of the group for the fiscal year ending Dec 31.
This news is published on Reuters.