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Water Industry Deals and News - April 2017

May 9, 2017 | Water

The OMM Monthly Water Report includes select transactions and other items of interest occurring during April 2017. Please contact any member of the OMM Water Practice for additional information on any of these items or any related items.

Overview

In April, acquisitions dominated the tracked deal volume with deals in China, the United States, Abu Dhabi, the United Kingdom, and India. In California, a long-running legal dispute over the Ojai water system concluded with a settlement and transaction shifting ownership of the municipal water system to a public owner. Meanwhile in Sacramento, American Water agreed to purchase a local water system, pending regulatory approval. Water treatment equipment manufacturers featured among the financings in the April tracked deals, and UK-based Thames Water and its parent Kemble Water continued to attract investment.

Mergers & Acquisitions



Linxing Water Supply Co., Ltd.

Linxing Water Supply Co., Ltd.

April 3, 2017

Changxing Linsheng Wastewater Treatment Co., Ltd. and Zhang Jianwen have entered into an equity transfer agreement to acquire an 85% stake in Linxing Water Supply Co., Ltd from Ding Ronglin and Ding Hao for $1.5 million. China-based Linxing operates water distribution networks in Singapore. Changxing Linsheng Wastewater is a subsidiary of AnnAik Limited, an investment holding company engaged in steel manufacturing and engineering projects, including wastewater treatment plants.

 

Abu Dhabi Water & Electricity Authority

April 4, 2017

Abu Dhabi Water & Electricity Authority acquired an additional 21.67% stake in Abu Dhabi National Energy Company PJSC (ADX:TAQA) from Farmer's Fund. Following the acquisition, Abu Dhabi Water & Electricity Authority has increased its stake in TAQA from 52.38% to 74.05%. TAQA generates electricity in the United Arab Emirates, Ghana, India, Morocco, Oman, Saudi Arabia, and the United States, and produces and supplies desalinated water in the United Arab Emirates.


Golden State Water Company

April 13, 2017

Golden State Water Company, a wholly-owned subsidiary of American States Water Company (NYSE: AWR), entered into an agreement to sell Ojai Water System operating assets for $34.5 million to Casitas Municipal Water District. The settlement and transaction represents an amicable end to a polemic relationship beset with litigation. Golden State Water has owned and operated the 2,900-connection Ojai water system since 1929.



Kemble Water Holdings Limited

Kemble Water Holdings Limited 

April 13, 2017 

Services QS UK Infrastructure Trust No. 1 agreed to acquire a 3.34% stake in Kemble Water Holdings Limited from QIC Diversified Infrastructure (Jersey) Limited. Kemble Water is the parent company of Thames Water, a major supplier of public water and wastewater services in the United Kingdom.

 

Yunnan Water (Hong Kong) Company Limited

April 13, 2017

Yunnan Water (Hong Kong) Company Limited agreed to pay $71 million for a stake in Pan Asia International (Sishui) Co., Limited. The parent of Yunnan Water is a state-owned investment holding company engaged in the development, design, construction, operation, and maintenance of municipal water supply and wastewater treatment facilities in China. After the transaction Pan Asia will hold a 95% stake in Hohhot Chunhua Jiawei Water Operations Co., Ltd., providing wastewater treatment in Inner Mongolia. Upon completion, Pan Asia will operate as wholly-owned subsidiary of Yunnan Water (Hong Kong).


 


Hong Kong Spring Water Ding Dong Group

Hong Kong Spring Water Ding Dong Group

April 19, 2017

Asia Resources Holdings Limited (SEHK:899) entered into an agreement to purchase a 20% stake in Hong Kong Spring Water Ding Dong Group for approximately $34.6 million from Jiu Tai International Resources Company Limited. During the year ended December 2016, Hong Kong Spring Water, a producer of bottled water, reported a net loss of $1.6 million and net liabilities of $3.9 million. Asia Resources is a diversified holding group with mining, real estate, and finance businesses. 

Water Treatment Entegris, Inc.

April 25, 2017       

Water Treatment Entegris, Inc. (NasdaqGS:ENTG) acquired a water and chemical filtration product line from W. L. Gore & Associates, Inc. for $20 million. W. L. Gore manufactures a wide range of electronics, fabrics, industrial, and medical products. Entegris manufactures and supplies micro contamination control products, specialty chemicals, and advanced materials handling solutions for manufacturing processes in the semiconductor industry.

 


Chembond Chemicals Limited

April 27, 2017       

Chembond Chemicals Limited (BSE:530871), a manufacturer of specialty chemicals based in India, signed an agreement to acquire the remaining 45% stake in Chembond Solenis Water Technologies Limited from Solenis Netherlands B.V. for $7.4 million. Post-closing, Chembond Solenis Water Technologies Limited will become a wholly-owned subsidiary of Chembond Chemicals Limited. Chembond Solenis Water provides industrial water treatment solutions, including cooling water, boiler water, and wastewater treatment, as well as maintenance, dust control, and reverse osmosis chemicals.


California American Water Company

April 27, 2017       

California American Water Company entered into an agreement to acquire the operating assets of Fruitridge Vista Water Company from a family for $20.8 million. The deal is subject to approval of the California Public Utilities Commission. Fruitridge Vista is a Class B water utility serving approximately 4,800 customers in Sacramento, California. California American Water, a subsidiary of American Water (NYSE: AWK), supplies water to nearly 60,000 customers in the Sacramento region and approximately 180,000 customers in California.

 
   

Public & Private Financings







HaloSource, Inc.

April 21, 2017

HaloSource, Inc. (AIM: HAL) offered 73,173,333 placing shares and 52,204,533 subscription shares. The shares will commence trading on the Alternative Investment Market of London Stock Exchange. The company intends to use the proceeds for additional working capital and to fund commercialization of the company's lead removal technology and expansion of its drinking water business. Based in Washington, HaloSource utilizes polymer chemistries in developing and manufacturing water treatment products and is active in China, India, and Latin America.

 

Waterco Limited

April 21, 2017 

Waterco Limited (ASX:WAT) announced a share repurchase program. Under the program, the company will repurchase up to 1,234,547 shares, representing 10% of the company's issued capital, for a total consideration of $2 million. The purpose of the program is to improve shareholder returns, enhance capital efficiency, and maintain sufficient flexibility to pursue future growth and investment opportunities. Waterco Limited is an Australia-based manufacturer and exporter of equipment for pools, rural pumps, and water treatment facilities.


Perfect Water Worldwide, LLC



Perfect Water Worldwide, LLC

April 24, 2017       

Perfect Water Worldwide, LLC announced that it will raise $250,000 in a round of funding by issuing convertible unsecured promissory notes pursuant to an exemption provided under Regulation D. Perfect Water designs, manufactures, and sells hybrid consumer water improvement products, such as home filter systems.

 


Thames Water Utilities Cayman Finance Limited

April 25, 2017       

Cayman-based Thames Water Utilities Cayman Finance Limited issued 2.875% Class B Subordinated Notes and 2.375% Class B Subordinated Notes due in 2027. The total principal amount of the offerings was $708 million with proceeds to be used for debt refinancing and general corporate purposes. The issuing was led by BNP Paribas, HSBC, JP Morgan, and MUFG. Thames Water Utilities Cayman Finance raises finance through the issue of bonds of its parent, Thames Water Utilities Limited based in the United Kingdom. The notes are guaranteed by Thames Water Utilities Holdings Limited, Thames Water Utilities Limited, Thames Water Utilities Finance Limited and Thames Water Utilities Cayman Finance Limited.


Global Water Resources, Inc.

April 27, 2017       

Global Water Resources, Inc. (NasdaqGM: GWRS) registered 815,825 shares of common stock issuable pursuant to a stock option plan. Global Water Resources is a water management company that owns, operates, and manages water, wastewater, and water recycling facilities in Phoenix, Arizona, serving approximately 50,000 people in 19,000 homes.


   



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