China Everbright International to launch a $484M share sale - IFR

By Rizza Sta. Ana

Dec 10, 2013 09:33 AM EST

According to IFR on Tuesday, sources said China Everbright International Ltd will be looking to raise up to HKD3.75 billion or USD484 million in a share sale. The Chinese waste management and energy company is reportedly issuing new shares for the planned float.

According to the report, 430 million shares will be sold by Everbright International at a indicative price range of HKRD8.46 per share to HKD8.72 per share. The float size was calculated as 10.6% of Everbright International's total shares outstanding. The price range that was cited was a discount of 4.8% to 7.8 percent of the waste management and energy firm's last traded price.

Earlier in the day, Everbright International halted its trading in anticipation of the placement of its shares. It was not clear in the IFR or Reuters reports regarding the purpose of its share sale. Morgan Stanley was said to be tapped as Everbright International's bookrunner for the planned float.

China Everbright International currently has a market capitalization of USD4.75 billion. As an investment holding company, it has interests in operations and construction of environmental energy projects, which include alternative energy, waste water treatment, waste-to-energy power plants. According to Thomson Reuters data, Everbright International's subsidiaries include Everbright Environmental Energy (Jiangyin) Co Ltd, Everbright Environmental Energy (Changzhou) Co Ltd and Everbright Alternative Energy (Dangshan) Co Ltd.

In November, Everbright International inked an 100% equity transfer agreement to acquire water treatment company Lianyungang Suzukigumi Waste Co, Ltd with Japan's Suzukigumi Co, Ltd. The acquisition of the Japanese firm marked Everbright International's venture into the hazardous waste incineration and medical waste treatment businesses.

Everbright International Chief Executive Officer Chen Xiaoping then said about its acquisition in November, "The Lianyungang Project highlights the Group's new strategy of expanding its business through acquisition, and is also a significant step towards entering the medical waste treatment sector. As Everbright International's first operating hazardous solid waste incineration project, it will provide valuable experience for the construction of the Zibo Hazardous Waste Treatment Project in Shandong Province. As market demand continues to rise, the medical waste treatment business has bright prospects. The Group will seize this opportunity to expand our business, further enhance the Group's status in the hazardous waste treatment industry and strengthen the Group's core competitiveness."

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