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SINGAPORE: Mainboard-listed Memstar Technology said on Tuesday it is spending 500 million yuan or about S$101.6 million to form a new entity in China.
The manufacturer of products for water treatment services has entered into an agreement with Shenyang Water Group (SWG) to set up the new body.
Memstar will take a 55.8 per cent stake in the new entity, which will acquire water and wastewater treatment plants in China's Shenyang City.
Its partner, SWG, will inject target assets worth some 333 million yuan or about S$67.7 million for a 40 per cent stake in the new entity. The remaining 4.2 per cent equity stake will be owned by an unrelated third party.
Memstar said it will fund its proposed cash investment from its internal resources and external resources like bank borrowings or debt.
It added that the new entity is targeted to be a major membrane technology-based water player in North China.
- CNA/so
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