C&G sells waste-to-energy business in China for RMB1.85b

Southeast Asian expansion underway.

In a release, SGX Mainboard-listed C&G Environmental Protection Holdings Limited announced that the Group has reached a new milestone in the proposed sale of its WTE business in China, as it repositions itself to focus on the expansion of its business in Southeast Asia.

The Group, through its wholly-owned subsidiary, C&G Environmental Protection (Hong Kong) Company Limited, has entered into a legally binding framework agreement with Grandblue Environment Co. Ltd for a 100% sale of its equity interest in C&G Environmental Protection (China) Company Limited, a wholly-owned subsidiary of C&G HK.

The proposed consideration for this sale of the Group’s WTE business and assets (including concession rights) and its principal operating subsidiaries in China, is valued at RMB1.85 billion (approximately S$385.4 million) and will be satisfied by cash and the issuance and allotment of new ordinary shares in the share capital of Grandblue.

RMB1.1 billion (approximately S$231.25 million) - will be satisfied in cash whilst the remaining RMB0.75 billion (approximately S$156.25 million), will be by way of allotment and issuance of not more than 89,928,058 Grandblue shares at an issue price of RMB8.34 (approximately S$1.74) per share.

Grandblue’s share price before the trading halt was RMB10.22 (approximately S$2.13) per share.

Said Mr. Lin Yan, Executive Chairman and Group CEO, “We are pleased to have reached a new milestone in the proposed sale of our WTE business to Grandblue.

Through this strategic arrangement, we will become the second largest shareholder in Grandblue, enabling a change of our business platform to hold our WTE business in China through Grandblue. This is also in line with our strategy to monetise our assets to enhance shareholder value and explore additional growth.”