27 May 2012
Disposal of the Qingzhou Bridge in Fuzhou City
Contributes a Cash Flow of HK$660 Million
Further Focus on Developing Core Environmental Protection Business
According to the agreement, the Company has agreed on the disposal of 80% share capital of and shareholder loan due from GREENWAY VENTURE LIMITED (the "Disposal Company"), representing a total consideration of approximately HK$660,098,000. It is expected that the estimated gain from the disposal (before deduction of expenses and taxation) will be approximately HK$247,174,000.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "The Qingzhou Bridge is currently the only asset of the non-core business of the Group, which has been generating a decent return to the Group in the past few years. In order to further optimize and pool the Group's resources to the environmental protection business so that the traditional advantages of the Group's core business can be further developed and improved, we consider the Disposal has provided an excellent opportunity and timing for the Group to realize its infrastructure investment in the Qingzhou Bridge. Upon completion of the transaction, the Group will become an integrated environmental protection enterprise which solely develops environmental protection and alternative energy businesses. This will further enable the Group to pool its resources to develop environmental protection market and continuously explore new environmental protection projects."
Mr. Chen added, "Currently, environmental energy and environmental water businesses are the strategic development focus of Everbright International. The considerable amount of cash flow generated from this transaction will be used for development of the Group's core environmental protection business, e.g. waste-to-energy projects and waste water treatment projects, etc. Looking ahead, capitalizing on the opportunities that arise from the country's policies in developing environmental energy, the Group will further develop its business in the waste-to-energy sector and construct, operate and manage all our projects to the highest standard by adhering to the operating philosophies of "Producing quality projects and Building a quality brand". The Group will strive to achieve its goal of becoming the leading player in the domestic environmental protection industry."