(Reuters) – Singapore water treatment company United Envirotech Ltd (UEL), nearly 30 percent owned by private equity firm KKR & Co LP, said KKR and Chinese state-backed conglomerate CITIC Ltd will launch a takeover offer valuing UEL at about S$1.9 billion ($1.5 billion) on a fully-diluted basis.
The investment in UEL, which has a market value of S$1.4 billion, allows CITIC to grow its businesses in environmental protection, an area with significant growth potential in China, CITIC and KKR said in a joint statement on Wednesday.
CITIC will become UEL’s largest shareholder after the transaction is completed, with KKR moving down to second.
“The consortium intends to maintain the listing of UEL post transaction,” CITIC and KKR said.
UEL in July said it was in talks with a potential buyer