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HONG KONG, Nov 13, 2009 - (ACN Newswire) - Interchina Holdings Company Limited ("Interchina"/"the Group") (SEHK code: 0202) announced it underwent a business integration with its subsidiary, a Shanghai A-share company, Heilongjiang Interchina Water Treatment Company Limited ("Interchina A-share"). Interchina A-share will issue not more than 130 million new shares to not more than 10 independent target investors to raise not more than RMB900 million. The issuance price range is not less than RMB6.55 per share. The shareholding of Interchina Holdings then reduces from 70.2% to 50.2% in Interchina A-share. As at 12 November 2009, the closing price and market capitalization of Interchina A-share was RMB7.87 per share and RMB26 billion respectively. Interchina A-share will acquire 75% interest in company at Qinhuangdao and the entire equity interest of three Interchina Holdings' water treatment companies located at Changli, Maanshan and Ordos at a total consideration of RMB198, 860,700.
After acquiring the four water treatment companies from Interchina Holding, together with the three existing water treatment companies within Interchina A-share, Interchina A-share ultimately controls 17 water treatment companies. Its average daily treatment capacity increases more than a quadruple from 240,000 tonnes to 1.3 million tonnes. Also, It is estimated that the annual revenue is expected to increase RMB200 million. Interchina A-share targets to reach 10 million tonnes of average daily water processing capacity within 3 to 5 years time, in parallel to the top three water treatment companies in China.
The Chairman of Interchina, Ms. Wing Man Yi said, "Upon the completion of the business integration, Interchina Holdings will concentrate its resources on developing environmental energy, while Interchina A-share will focus on water treatment projects. The business direction of the two listed companies becomes clearer."
"Through our business restructure, people should realize that the fund raising ability of A-share market in China is tremendous. The Company is the first and the only main board listed company in Hong Kong that has controlling stake in a Shanghai Listed A-share company. Looking forward, Interchina can, if necessary, raise fund to expand the business via the stock market in China. We are going to place more resources in environmental energy in order to bring potential growth to the company.
Through disposing its four water plants to Interchina A-share, Interchina Holdings at present holds approximately HK$400 million cash in hand together with total net asset value of over HK$3.2 billion (including Interchina A-share of HK$2.1 billion and other assets of HK$1.1 billion), and reserves sufficient resources to kick off the environmental energy projects.
The Chairman of Interchina, Ms. Wing Man Yi concluded, "We believe Interchina A-share will be a major and stable source of revenue of the Group and the profit contribution from its operations will grow steadily. Looking forward, we will leverage on the A-share financing platform and the competitive edges of water treatment industry chain, to focus on water-oriented environmental investment and operation, to further enlarge the business development scale and to raise the profit level of the water investment projects, in which municipal and industrial customers will be the focused clientele in the provision of total water solution"
Contact:
JOVIAN Financial Communications Ltd
Angel Y Y Yeung
Tel: (852) 2581 0168
Fax: (852) 2854 2012
Email: angel @joviancomm.com
Topic: Press release summary
Source: Interchina Holdings
Sectors: Water, Daily Finance, Environment, ESG
https://www.acnnewswire.com
From the Asia Corporate News Network
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