Ranhill's unit to sell 60% stake in RWHK for RM167m

Ranhill Holdings Bhd's wholly-owned subsidiary, Ranhill Water Technologies (Cayman) Ltd (RWT Cayman) plans to divest a 60 per cent stake in its unit, Ranhill Water (Hong Kong) Ltd (RWHK) to SIIC Environment Holdings Ltd for RM167 million.

The payment shall be settled entirely via cash and both companies will enter into a sale and purchase agreement within 30 days from the date of signing the term sheet.

In a statement, Ranhill said that RWT Cayman had entered into a term sheet with Singapore-based SIIC Environment Holdings Ltd (SIIC) yesterday in relation to the divestment plan.

Ranhill said SIIC had also agreed to provide US$30 million shareholder's loan to RWHK, proportionate to its eventual shareholding, upon completion of the proposed divestment.

Ranhill President and Chief Executive Tan Sri Hamdan Mohamad said the divestment plan was in line with its intention to seek strategic partnership to further its business expansion in China.

"We foresee that SIIC and its subsidiaries may be able to open tremendous investment opportunities for Ranhill in China.

"This is not just a divestment of asset but also a formation of strategic partnership with SIIC and its subsidiaries," he added.

Ranhill's share price was flat at 96 sen with 27,000 shares changed hands.

SIIC presently has over 80 water treatment and supply projects with a total design capacity of more than seven million tonnes per day and four waste incineration projects across 15 municipalities and provinces.