NWS Holdings Limited (“NWS Holdings” or the “Group”; Hong Kong stock code: 659) has reached agreement with its French partner SUEZ for the restructuring of their 50/50 joint venture, Sino-French Holdings (Hong Kong) Limited (“SFH”). The enlarged cooperation will accelerate the development of a wide range of environmental businesses in Hong Kong, Mainland China, Macau and Taiwan.
Upon completion of the transactions, which is expected to be in or around December this year, SFH will expand its business portfolio from 35 to 59 projects, enabling it to provide a one-stop service for water, wastewater and waste treatment, and engineering and procurement to customers in Greater China’s fast-growing environmental markets. The net asset value of SFH will increase from approximately HK$4.5 billion to approximately HK$8 billion based on the enlarged business structure (both as at 31 December 2015). NWS Holdings and SUEZ will indirectly own 42% and 58% interests in SFH respectively.
Tsang Yam Pui, Chief Executive Officer of NWS Holdings, said, “The expanded cooperation with our long-term partner SUEZ underpins the Group’s strategy of driving full range of environmental businesses across a wider geographical footprint. Through the combined strength of both partners in financing, management and environmental technologies, and in-depth knowledge of Greater China markets, we are confident that we can capture the enormous business opportunities in the region.”
Under the agreement, NWS Holdings and SUEZ will re-group their respective waste and wastewater treatment businesses under SFH by way of injecting their respective effective interests of totalling 24 business entities into SFH, and to use the enlarged platform to further the development of a wider range of environmental services. NWS Holdings will also make a cash contribution of HK$476 million for the expanded business portfolio and market footprint.
SFH is a joint venture between NWS Holdings and SUEZ that engages in water and waste water treatment and other related services, with 33 projects in Mainland China and two projects in Hong Kong and Macau. Following the completion of the transactions, the business scope of SFH will be enlarged to also include landfill, waste incineration (hazardous and municipal), waste collection, organic waste treatment, and engineering and procurement in the Greater China region. Its portfolio will be expanded to 59 projects with 17 of them in Hong Kong.
NWS Holdings Limited
NWS Holdings Limited (“NWS Holdings”, Hong Kong stock code: 659), the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17), operates businesses in Hong Kong, Mainland China and Macau. Its Infrastructure portfolio includes Roads, Environment, Logistics and Aviation projects. Its Services portfolio comprises Facilities Management (the management of Hong Kong Convention and Exhibition Centre and Free Duty), Construction & Transport (construction, bus and ferry services) and Strategic Investments.
SUEZ (Paris: SEV, Brussels: SEVB) supplies drinking water to 92 million people, delivers wastewater treatment services to 65 million, collects waste produced by almost 50 million, recovers 16 million tonnes of waste each year and produces 7 TWh GWh of local and renewable energy. With 82,536 employees, SUEZ, which is present on all five continents, is a key player in the sustainable management of resources. SUEZ generated total revenues of €15.1 billion in 2015.