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

·1-min read
Logo of Suez

HONG KONG (Reuters) - NWS Holdings Ltd said on Tuesday it would sell its 42% stake in a wastewater treatment unit to joint venture partner Suez 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, has also agreed to sell an indirect 5.5% stake in waste incineration power generation group Chongqing Sanfeng Environment Group Corp Ltd and a 6.3% interest in Chongqing Water Group Co Ltd 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)