Ranhill Water Technologies (Cayman) Ltd (“RWT Cayman”), a subsidiary of Ranhill Holdings Berhad (“Ranhill” or “Company”) has, on 27 September 2016, entered into a Sales & Purchase Agreement (“SPA") with Asia Wisdom Investments Limited, an indirect wholly owned subsidiary of SIIC Environment Holdings Limited (“SIIC”) to divest 60% of Ranhill Water (Hong Kong) Ltd (“RWHK”), a wholly-owned subsidiary of RWT Cayman to SIIC.

Under this agreement, SIIC will purchase 60% of RWHK for a total cash consideration of RMB273.90 million (equivalent to about RM169.11 million). The transaction will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of Ranhill.

“This transaction signifies the beginning of an exciting strategic partnership with SIIC to pursue growth of Ranhill’s wastewater business in China, particularly in the industrial wastewater treatment sector”, said Tan Sri Hamdan Mohamad, President & Chief Executive of the Company. “SIIC’s local knowledge and strong business alliances will support the joint venture to access quality concession opportunities in a bigger market with competitive project financing”, he elaborated.

“Ranhill has been investing in the China wastewater business for the past 8 years and the time is right for us to monetise our investments while at the same time expanding the reach of the business”, Tan Sri Hamdan further explained.

The transaction proceeds will be utilised as capital for Ranhill to venture into other new investment opportunities in the power sector, and the matching shareholder loans from SIIC will be used to expand the China water operations.

SIIC, an SGX-ST Mainboard-listed company, presently has over 80 water treatment and supply projects with a total design capacity of more than 7 million ton/per day and 4 waste incineration projects across 15 municipalities and provinces, namely Shandong, Guangdong, Hubei, Hunan, Jiangsu, Shanghai, Zhejiang, Fujian, Guangxi, Ningxia, Henan, Liaoning, Shanxi, Sichuan and Heilongjiang. It’s also a great opportunity for Ranhill to provide services to SIIC’s existing water and wastewater treatment plant by retrofitting.