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HONG KONG, Jan 21, 2015 - (ACN Newswire) - CT Environmental Group Limited ("CTEG" or the "Group"; stock code: 1363), a provider of one-stop centralized and customized wastewater treatment services, industrial water supply services and sludge treatment services in China, announced that it has entered into a subscription agreement with GIC ("Investor") on 20 January 2015. Pursuant to the agreement, CTEG has conditionally agreed to allot and issue an aggregate of 87,115,959 shares at the subscription price of HK$7.12 per share to the Investor. The net proceeds from the subscription are estimated to be approximately HK$613.9 million. CTEG intends to use the net proceeds to fund the acquisition of equity interest in Guangzhou Lvyou Industrial Waste Reclamation Treatment Company Limited as announced on 1 December 2014 and any potential mergers and acquisitions and as general working capital.
The shares that CTEG has agreed to allot and issue to the Investor represent approximately 6.04% of the issued share capital of CTEG and 5.70% of the enlarged share capital. The subscription price of HK$7.12 per subscription share represents a discount of approximately 8.48% to the closing price of HK$7.78 per share as quoted on the Hong Kong Stock Exchange on 20 January 2015.
According to the agreement, CTEG will establish an investment committee, comprising the chairman of the board; the chief executive officer; and a representative nominated by the Investor. The Investment Committee shall consider, evaluate and recommend to the board any proposed acquisitions, joint ventures or projects of the Group.
Mr. Tsui Cham To, Chairman of CTEG, said, "Aside from enhancing and strengthening the shareholder profile of the Group, the subscription will also strengthen the Group's capital base and financial position. In the meantime, the net proceeds will be used to fund the acquisition of Guangzhou Lvyou Industrial Waste Reclamation Treatment Company Limited, enhancing the Group's industrial wastes business. Looking ahead, CTEG will continue to explore business investments or other opportunities, with an aim to accelerate its business development and broaden its income stream."
Contact:
Strategic Financial Relations (China) Limited
Ms. Karen Hung Tel: (852) 2864 4845 Email: karen.hung@sprg.com.hk
Ms. Janice Au Tel: (852) 2864 4874 Email: janice.au@sprg.com.hk
Ms. Brandi Mo Tel: (852) 2114 4941 Email: brandi.mo@sprg.com.hk
Topic: Press release summary
Source: CT Environmental Group Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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