SINGAPORE: China Jinjiang Environment Holding Company Limited, a leading waste-to-energy operator in China, has entered into a conditional sale and purchase agreement for the proposed disposal of 430 million ordinary shares in the Company held by China Green Energy Limited to Zhejiang Energy International Limited and Zheneng Capital Holdings for an aggregate consideration of RMB 1.634 billion. [the_ad id=”31605″]Both Zhejiang International and Zheneng Capital are controlled by Zhejiang Provincial Energy Group Co., Ltd.

The Dou Family currently indirectly owns 55.61% of the rights and interests in Jinjiang Environment through China Green Energy and Win Charm Limited. The Sale Shares represents approximately 29.79% of the entire issued share capital of Jinjiang Environment. Upon the expected completion of the proposed transaction by 10 September 2019, Mr. Dou Zhenggang and Ms. Wei Xuefeng are expected to be the second largest controlling shareholders of Jinjiang Environment, each indirectly holding approximately 25.82% of the shares in the Company.

Zheneng Group is a state-owned provincial energy enterprise that is involved mainly in energy-related businesses, including electric power source construction, electric and thermal power generation, development, trading and transportation of petroleum, coal and natural gas, energy services and energy finance.

Collectively, Zheneng Group manages more than 200 companies, which supplies approximately 50% of the electricity power consumption, nearly half of the total coal consumption and approximately 83% of the total natural gas consumption in the Zhejiang Province.

Its net asset value at the end of 2018 was RMB 106 billion. Zhejiang International, which is involved in trade and foreign economic co-operation matters, has a registered capital of about HKD 3.1 billion and a total net asset value of approximately HKD 3.46 billion at the end of 2018, while Zheneng Capital, which is positioned as a professional institution for investment and management of financial assets, has a registered capital of about RMB 10 billion, and total net assets of RMB 19.03 billion at the end of March 2019.

Ms Wang Yuanluo, Chairman of Jinjiang Environment, said: “Zheneng Group’s controlling stake in Jinjiang Environment is a very important and significant one for Jinjiang Environment. With more than 20 years of development, Jinjiang Environment holds strong advantages and leverage in the WTE generation industry. It represents a strong affirmation of our value as a WTE company and demonstrates our ability to attract quality investors.

“As one of the largest state-owned enterprises in the Zhejiang Province, Zheneng Group has vast capabilities across the entire energy generation value chain. We look forward to working closely with our new shareholders, whose resources and strong financial expertise will facilitate Jinjiang Environment’s financing and future development, propelling us closer to fulfilling our vision to become a global leader in the waste to energy industry.”