Membrane treatment specialist United Envirotech Ltd (UEL) announced on 3 October 2011 that the group has exercised a call option to acquire the entire equity interest of Tongji Environmental (China) Pte Ltd, the holding company for Aton Environmental (Shenyang) Co Ltd, for RMB 34.03 million (US$ 5.34 million).
Aton has a 30-year build-operate-transfer (BOT) concession agreement to treat 50,000 m³/d of municipal wastewater in Xinmin city, Liaoning Province, China. The close proximity to UEL’s existing treatment plants and management team will facilitate the ability to oversee Aton’s operation with the municipal authority
The deal was arrived at on a willing-buyer, willing-seller basis after negotiations between the parties, valuing the treatment facilities at RMB 69 million (US$ 10.8 million).
Through the acquisition, the group will be able to expand its presence in Liaoning Province, at the same time providing potential opportunities for future upgrading and recycling, using the group’s membrane technology. This project will be UEL’s third investment in Liaoning Province.
UEL’s chairman and CEO, Dr Lin Yucheng, elaborates on the latest acquisition: “Our investment in Aton Environment is part of our business strategy to increase recurring income streams through the investment in water treatment projects. In line with China’s environmental drive, this acquisition is another springboard for UEL to participate in the increasing demand for water and wastewater treatment. Moving forward, we are upbeat on the growth prospects in China’s wastewater industry and will invest in similar projects at economically developed provinces.”