It has got a 40 per cent partner for its China concession, which will subsequently be listed on the Hong Kong Stock Exchange in the next two to three years.
With Emerging Markets Infrastructure Fund Pte Ltd (EMIF) to sell a 40 per cent stake in its China unit, Salcon Water (Asia) Ltd (Salcon Asia), to the latter for RMB238 million. EMIF is an infrastructure fund managed by Mitsui & Co Ltd and Challenger Financial Services Group.
Salcon Asia's project portfolio comprises six concessions that operate raw water, water and wastewater businesses in Shandong, Zhejiang and Fujian provinces. Another two concessions are expected to be injected into the company in early 2011.
Three of the six concessions have raked in RM60 million in revenue, and this figure is expected to double by 2012. The sale allows Salcon to recoup its investments in the six concessions since it entered China in 2004.
With Emerging Markets Infrastructure Fund Pte Ltd (EMIF) to sell a 40 per cent stake in its China unit, Salcon Water (Asia) Ltd (Salcon Asia), to the latter for RMB238 million. EMIF is an infrastructure fund managed by Mitsui & Co Ltd and Challenger Financial Services Group.
Salcon Asia's project portfolio comprises six concessions that operate raw water, water and wastewater businesses in Shandong, Zhejiang and Fujian provinces. Another two concessions are expected to be injected into the company in early 2011.
Three of the six concessions have raked in RM60 million in revenue, and this figure is expected to double by 2012. The sale allows Salcon to recoup its investments in the six concessions since it entered China in 2004.
Meanwhile, EMIF's managing director Masayoshi Hosoya said the fund will remain as a long-term investor in Salcon Asia, even after the company floats its shares.
Meanwhile it also plans to list its unit Salcon Water (Asia) Ltd (Salcon Asia) on the Hong Kong Stock Exchange (HKEx) in the next two to three years.
The company needed time to grow its subsidiary to a “decent size” in terms of assets before application for listing, noting the company hoped to increase Salcon Asia’s total operating capacity from 1,035 million litres per day (MLD) to at least 2,000 MLD in the next couple of years.
The company needed time to grow its subsidiary to a “decent size” in terms of assets before application for listing, noting the company hoped to increase Salcon Asia’s total operating capacity from 1,035 million litres per day (MLD) to at least 2,000 MLD in the next couple of years.
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