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Water Industry Deals and News - August 2016

8월 23, 2016 | Water

The O'Melveny Water Report includes select transactions and other items of interest that occurred during July 2016. Please contact any member of the O'Melveny Water Practice for additional information on any of these items or related matters.  

The month of July saw continued investment and activity in a variety of water-related projects, including mergers and acquisitions and public financings. The majority of deals involved China or the United States, although additional activity occurred in Australia, Canada, France, Ireland, the Netherlands, and Vietnam, with wastewater treatment representing the largest industry sub-sector. In addition, we tracked one deal centered around desalinization.

Venture Capital & Private Financings

New Concepts Holdings Limited
July 25, 2016

New Concepts, a Hong Kong-based civil engineering firm, placed $21.5 million worth of shares with CEF Concept Holdings Limited and Go Million International Limited, the proceeds of which will be used for working capital and the proposed acquisition of a water treatment business. 

 




Public Offerings

Hohhot Chunhua Water Development Company
July 2016

Hohhot Chunhua Water, a subsidiary of state-owned Beijing Capital Co., Ltd., issued an unknown amount of medium-term unsecured notes as part of its efforts to increase its registered capital by $36 million. The capital will be used to cover upgrade investment, construction, and operation of the Xinxinban, Zhanggaiying, and Gongzhufu sewage treatment plants. Hohhot Chunhua Water currently operates three sewage treatment plants with a capacity of 260,000 tons per day serving 1.2 million people in Hohhot, Inner Mongolia Autonomous Region, China. 

 

BIWASE

Binh Duong Water Supply Sewerage Environment Co., Ltd.
July 2016

Vietnam-based Investment and Industrial Development Corporation (also known as Becamex IDC) is selling its stake in Binh Duong Water Supply Sewerage down from 100% to 51% via public offering. Binh Duong Water Supply Sewerage serves the Binh Duong province in southeast Vietnam, immediately north of Ho Chi Minh City.

Nederlandse Waterschapsbank N.V.
July 13, 2016

Nederlandse Waterschapsbank N.V., a Dutch financial services provider for the public sector in activities related to water supply, issued $1.4 billion in two-year benchmark bonds, due on July 18, 2018. The bonds, listed on the Luxembourg Stock Exchange, have a coupon of 0.875% payable semi-annually.

 
 

Duxton Water Limited
July 28, 2016

Incorporated in April 2016, Duxton Water will offer up to 99,000,000 shares to raise up to $75.3 million. Duxton Water invests solely in Australian Water Entitlements and obtains returns through water entitlement leasing, sale of annual water allocations, and sale of permanent water allocations. Currently, Duxton Water holds a water entitlement portfolio of $28.8 million. The Australian entitlement market is based on a “cap and trade” model. Most of the assets of the market are contained within the Murray-Darling basin, with an estimated value of around $5.2 billion based on 2014-15 prices. 

   


Mergers & Acquisitions

Unity Water Conditioning
June 29, 2016

Flag City Water Systems, a water treatment company based in Findlay in northern Ohio, acquired Unity Water Conditioning.  Unity Water Conditioning, now Unity Water Systems, will continue as a standalone company with operations in Wauseon and West Unity, Ohio. Unity Water Systems distributes home and commercial water treatment systems.

 

Henan Zhonghui Lianhe

Henan Zhonghui Lianhe Investment Co., Ltd.
July 5, 2016

Fudan Water Engineering and Technology Co., Ltd., a subsidiary of China-based SIIC Environmental Holdings Ltd., acquired a 75% stake in Henan Zhonghui Lianhe Investment for $45.6 million.  Henan Zhonghui Lianhe Investment is based in China and provides wastewater treatment services through two wholly owned subsidiaries operating build-own-transfer sludge treatment plants in Xinxiang (capacity of 300 tons per day) and Nanyang (capacity of 200 tons per day).


VAF Filtration Systems 
July 7, 2016

Evoqua Water Technology announced its acquisition of VAF Filtration Systems, based in Arvada, Colorado. VAF manufacturers self-cleaning filtration screens and control valves for industrial and municipal water applications.

 

Celtic Anglian Water
July 10, 2016

Anglian Water Group will pay $20.4 million for the remaining 50% interest it did not already own in Dublin-based Celtic Anglian Water from Atlas Investments. Celtic Anglian Water is considered one of Ireland’s largest water service operators, managing water and wastewater infrastructure assets.


Larive Water Holding AG
July 7, 2016

Shanghai Safbon Water Service entered into a memorandum of understanding to acquire a 21.6% stake in Larive Water, based in Frauenfeld, Switzerland. Larive Water owns AquaSwiss AG, considered the world’s leading developer of thermal desalinization technologies. 

 

Ovivo Inc. 
July 13, 2016

SKion Water International GmbH agreed to pay $137.6 million for Ovivo. Ovivo is a global provider of equipment, technology, and systems dedicated to the treatment of water and wastewater, based in Québec, Canada and operating in 15 countries. Caisse de dépôt et placement du Québec (la Caisse), an existing Ovivo shareholder, agreed to increase its holdings to 30% from 18.7%. Prior to the deal, Ovivo was listed on the Toronto Stock Exchange. Now, Ovivio is privately owned by Skion (70%) and la Caisse (30%).


Sino Water Pte Ltd.
July 15, 2016

Sino Water, a 98.65% subsidiary of Puncak Niaga Holdings Bhd, agreed to sell its 93.81% stake in Luwei (Pingdingshan) Water to an unidentified Chinese state-owned enterprise. Luwei operates in the treatment and distribution of water and water-related services in Lushan, China. Puncak Niaga is a Malaysian investment company focused on water and wastewater services in China, oil and gas, and construction. This sale is part of Puncak Niaga’s strategy to exit from all its businesses in China.  

 

Jiangsu Dazhong Water Group

Jiangsu Dazhong Water Group Co. Ltd.
July 15, 2016

Jiangsu Dazhong Water Group acquired a 51% stake in Pizhou Yuanquan Water Operations Co., Ltd. and Xuzhou Yuanquan Sewage Treatment Co., Ltd. Pizhou Yuanquan Water Operations is a mid-sized sewage system operator in Pizhou, China, with revenue around $1.29 million. Xuzhou Yuanquan Sewage Treatment is a smaller sewage system operator with revenue around $860,000.


Comstock Mining
July 26, 2016

Comstock Mining will acquire 98 acres of land and 257 acre-feet of senior-priority water rights in Silver Springs, Nevada, financed by a two-year loan of $3.2 million secured by a deed of trust to be repaid out of sales of the land or water rights. The land and the excess water rights are valued at over $10 million. Comstock Mining is a Nevada-based gold and silver mine that began production in 2012.

 

Ecologic Petroleum Recovery
July 26, 2016

Ecologic Petroleum Recovery, a subsidiary of the French group AUREA, acquired the soluble oil treatment and polluted water treatment businesses of Scori S.A., a French company that reprocesses industrial waste. Ecologic Petroleum Recovery specializes in treating dangerous industrial waste and maintains a facility at Lillebonne, France with a capacity of 100,000 tons per year.


Yunnan Water Investment Co., Ltd.
July 28, 2016

Yunnan Water, a Chinese state-owned enterprise financing water investment projects in the Yunnan region, paid $100 million for a 50% interest in Galaxy NewSpring Pte. Ltd. Galaxy NewSpring, a joint venture between Mitsui & Co. Ltd. and Hyflux Ltd. based in Singapore, develops and operates 24 water supply and wastewater treatment plants in several provinces in China and South East Asia. Galaxy NewSpring is a leading provider of urban sewage water treatment in Yunnan Province.

   


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New Concepts Holdings Limited
July 25, 2016

New Concepts, a Hong Kong-based civil engineering firm, placed $21.5 million worth of shares with CEF Concept Holdings Limited and Go Million International Limited, the proceeds of which will be used for working capital and the proposed acquisition of a water treatment business. 

 

  

New Concepts Holdings Limited
July 25, 2016

New Concepts, a Hong Kong-based civil engineering firm, placed $21.5 million worth of shares with CEF Concept Holdings Limited and Go Million International Limited, the proceeds of which will be used for working capital and the proposed acquisition of a water treatment business.