SINGAPORE & BEIJING--(BUSINESS WIRE)--
United Envirotech Limited ("UEL", SGX: U19), a leading water treatment
and recycling solution provider in China, today announced that an
affiliate of Kohlberg Kravis Roberts & Co. L.P. (together with its
affiliates, "KKR"), a leading global investment firm with US$ 61 billion
in assets under management, has entered into a definitive agreement with
the company for a US$113.8 million convertible bond investment.
UEL provides engineering services using membrane technology to municipal
and industrial waste water treatment projects, and also operates a
portfolio of waste water treatment plants across China. KKR's investment
will support UEL's rapid business expansion to seize the attractive
opportunities in China's fast growing water industry.
"We are extremely excited to have world-class investor KKR as our
long-term value-added partner. KKR's investment will allow us to achieve
further growth at a crucial time in the development of the China waste
water treatment industry," said Dr. Lin Yucheng, Chairman and CEO of
UEL. "In addition to bringing in capital to support our growth, KKR's
global network, strong operational capabilities and extensive local
knowledge will add significant value to our future development.
"Together with KKR, UEL will continue to grow and cement its market
leadership, contributing to the overall improvement of the environment
in China," Dr. Lin added.
According to latest World Bank statistics, per capita water resources in
China are less than one third of the world's average1. By
applying advanced membrane technology in waste water treatment and
recycling, companies like UEL provide a viable solution to water
shortage and pollution problems, supporting sustainable and
environmentally-friendly development of the economy.
"KKR is delighted to have the opportunity to invest in UEL," said David
Liu, Member of KKR and CEO of KKR Greater China. "We are extremely
impressed with the company's strong track record, outstanding management
team and deep industry knowledge. We look forward to fully utilizing our
global network and industry expertise to support UEL in its future
growth. Equally, we look forward to working together with UEL on its
environmental initiatives in China."
The 2.5% coupon convertible bond investment will have a five-year tenure
and could be converted into equity shares at a conversion price of
S$0.450 per share, which represents a 37.3% premium to S$0.328 per
share, being the average closing price for trades done for the last 30
The convertible bond investment is expected to conclude before the end
of this year and is subject to customary conditions, including approval
from UEL's shareholders. A circular detailing the investment will be
dispatched to UEL's shareholders followed by an extraordinary general
meeting to be held on a date to be determined.
Stirling Coleman Capital Limited is the Arranger for the transaction and
Credit Suisse (Singapore) Limited is the Financial Advisor of KKR.
ABOUT United Envirotech Ltd.
United Envirotech ("UEL") is a leading membrane-based water and waste
water treatment and recycling solutions provider in China's chemical,
petrochemical and municipal sectors. Its principle activities include
design, fabrication, installation and commissioning of water and waste
water systems using its proprietary advanced membrane technologies such
as the Membrane Bioreactor (MBR) technology. UEL has designed and built
several of the largest industrial and municipal wastewater treatment
plants in Asia using the MBR technology.
UEL undertakes both turnkey and water investment projects (TOT/BOT/BOO),
as well as provides treatment plant operation and maintenance services.
UEL serves a strong prominent customer base such as petrochemical giants
like China Petrochemical Corporation ("Sinopec"), China National
Petroleum Corporation ("CNPC"), China National Offshore Oil Corporation
("CNOOC") and Sembcorp Industries in Singapore.
UEL was listed on SGX Mainboard on 22 April 2004 and on the Taiwan Stock
Exchange on the 22 October 2010. For additional information, please
visit UEL's website at www.unitedenvirotech.com.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with US$61.0 billion in assets under
management as of March 31, 2011. With 14 offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platforms. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
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Kreab Gavin Anderson (Singapore)
Foo, +65 6339 9110
M: +65 9878 8787
Yeo, +65 6339 9110
M: +65 9003 0147
Kristi Huller, + 1 212 230 9722
Source: United Envirotech Limited
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