HK's NWS Holdings plans $538 mln unit stake sale to French utility Suez

CTF Services

12/01/2021 02:23

HONG KONG, Jan 12 (Reuters) - NWS Holdings Ltd  0659.HK 
said on Tuesday it would sell its 42% stake in a wastewater
treatment unit to joint venture partner Suez  SEVI.PA  for
HK$4.17 billion ($537.74 million) as it reallocates resources to
focus on core competencies. 
    Euronext Paris-listed waste and water firm Suez already
holds 58% of the China-focused wastewater treatment services
provider Suez NWS Ltd. 
    NWS Holdings, the infrastructure, logistics and transport
services unit of conglomerate New World Development Co Ltd
 0017.HK , has also agreed to sell an indirect 5.5% stake in
waste incineration power generation group Chongqing Sanfeng
Environment Group Corp Ltd  601827.SS  and a 6.3% interest in
Chongqing Water Group Co Ltd  601158.SS  to Suez NWS for HK$2.36
billion. 
    "The disposals represent a transaction at an opportune time
and valuation for NWS to unlock value from its business
portfolio and reallocate their resources to focus on its core
competencies, invest in projects with growth prospects that can
derive more steady income and lucrative return," NWS Chairman
Henry Cheng said in a joint statement. 
    The Hong Kong-based company said the stake sale proceeds
would be diverted to its roads and logistics businesses.     
 
    
    ($1 = 7.7547 Hong Kong dollars)

 (Reporting by Donny Kwok; Editing by Sherry Jacob-Phillips)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))