Move seen to support growth plans in China.
SIIC Environment Holdings Ltd., formerly known as Asia Water Technology Ltd., announced yesterday that it will transfer its listing from the Catalist to the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) on 30 November 2012.
Commenting on the Transfer, Mr. Lawrence Wong, Head of Listings at SGX-ST, said: “We would like to congratulate SIIC Environment on its transfer to Mainboard. We look forward to them leveraging on this new platform, just as they had done on Catalist, to support their growth. ”
Mr. Zhou Jun, Executive Chairman of SIIC Environment said: “Hong Kong-listed, China state-owned conglomerate, Shanghai Industrial Holdings Limited (Shanghai Industrial), acquired us in 2010 against the backdrop of significant potential in the water business. This parenthood provides us strong support for our business development and expansion plan.”
Due to the presence in Singapore through its listing on the SGX-ST, SIIC Environment could gain access to funds, technological know-how and enhance stakeholder relationship, leveraging on Singapore’s status as a global hydrohub and financial centre.
Mr. Zhou added, “The Chinese water sector looks promising, backed by the growing demand for improvements in water quality coupled with the government initiatives to uphold the efficient water facilities.”
China is the world’s largest fresh water consumer and the government has earmarked RMB427 billion in its 12th Five-Year Plan to the water sector, compared to RMB332 billion spent in 2005-2010. This plan has been reaffirmed by the recent National People's Congress meeting held in November 2012. Other incentives such as the price reform mechanism for water supply reflects the country’s scarcity in resources, meets treatment costs and promotes conservation and recycling.
Shanghai Industrial is also committed to grow its water and environmental protection business and intends to consolidate its water-related assets to be held under SIIC Environment as a unified platform. Shanghai Industrial has more than a decade of proven track record for successfully executing mergers and acquisitions in 15 listed companies and currently holds controlling stakes in three of these listed companies.
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