Hyflux Ltd (the “Company”) is pleased to announce that, following the
announcement on 26 October 2005, SinoSpring Utility Ltd (“SinoSpring”), its 50%-
owned company, has reached substantial agreement on the terms of a proposed
investment by International Finance Corporation (“IFC”), the commercial lending
arm of the World Bank, in SinoSpring.
The proposed investment is for IFC to take a preferred equity interest in
SinoSpring of up to US$20 million.
SinoSpring is set up to develop and own BOT/BOO (build, own and transfer or
build, own and operate) projects in the treatment of water, seawater and
wastewater in China. Its current shareholders are RB (Labuan) Ltd (50%) and the
Company (50%). These present shareholders envisage that the Company will retain
its 50% equity in SinoSpring after IFC’s proposed investment.
Commenting on the proposed investment, Ms Olivia Lum, Group CEO and President,
said, “We are glad that, after extensive due diligence over several months, IFC
has decided in principle to invest in SinoSpring. We believe that IFC will be a
valuable partner in supporting our growing business in China and elsewhere such
as India. Such collaboration opens up for us another source of capital (both
equity and debt) and expertise. With this arrangement, we will be able to
continue to strengthen our strategy to build projects with long term recurring
revenue stream in China and other markets.”
SinoSpring through its subsidiaries is currently executing the following 8
projects in China:
(a) a 100,000 m3/day seawater desalination plant in Dagang, Tianjin
province;
(b) a 50,000 m3/day seawater desalination plant in Huludao, Lianning
province;
(c) four wastewater projects totaling 90,000 m3/day in Jiangshu
province;
(d) a 20,000 m3/day river water clarification plant in Yangkou, Jiangshu
province; and
(e) a 30,000 m3/day reservoir water treatment plant in Lushan, Henan
province.
This proposed investment is subject to the final approval of the managements
and the boards of directors of IFC, SinoSpring and the Company.
[MISC Announcement Title]
PROPOSED INVESTMENT IN SINOSPRING BY IFC
