United Envirotech Announces US$40 Million Follow-on Investment By KKR
United Envirotech Limited (“UEL”)(SGX:U19), a leading water treatment
and recycling solution provider in China, today announced that KKR, a
leading global investment firm with more than US$66 billion in assets
United Envirotech Limited (“UEL”)(SGX:U19), a leading water treatment and recycling solution provider in China, today announced that KKR, a leading global investment firm with more than US$66 billion in assets under management, has entered into a definitive agreement with the company for a US$40 million common equity investment. KKR subscribed US$113.8 million convertible bonds issued by UEL in October 2011 to support the company’s business expansion, and has been working with UEL to capture the attractive growth opportunities in China’s water industry. UEL provides engineering services using membrane technology to municipal and industrial waste water treatment projects, and also operates a portfolio of waste water treatment plants across China. “We are delighted to have KKR continue to invest in UEL to support our strong growth. It is a clear indication that KKR is satisfied with UEL’s performance and is very confident in our growth potential. KKR has truly demonstrated to be a long-term, value-added partner since their original investment. Working with KKR, we are able to leverage their global resources, operational capabilities with KKR Capstone and their China team’s local experience and track record of success,” said Dr. Lin Yucheng, Chairman and CEO of UEL. “With the additional capital, UEL is well positioned to continue our growth and scale new heights in China’s water treatment space.” “KKR is excited to have the opportunity to increase our investment in UEL,” said David Liu, Member of KKR and CEO of KKR Greater China. “UEL has an outstanding management team under Dr. Lin, with deep industry knowledge and strong local expertise. We are delighted to further strengthen our partnership with them and look forward to continuing to utilize our global network and local expertise to support UEL’s long term growth and contribute to the overall environmental initiatives in China.” The offering price is S$0.50 per share, which represents an 8.5% premium to S$0.461 per share, being the volume weighted average price for the last 30 trading days. The proceeds will be used to fund the acquisition of water treatment plants, upgrading of existing plants and Company’s working capital.