KKR & Co. L.P.
United Envirotech Announces US$40 Million Follow-on Investment by KKR
SINGAPORE & BEIJING--(BUSINESS WIRE)--
United Envirotech Limited ("UEL")(SGX:U19), a leading water treatment
and recycling solution provider in China, today announced that KKR, a
leading global investment firm with more than US$66 billion in assets
under management, has entered into a definitive agreement with the
company for a US$40 million common equity investment. KKR subscribed
US$113.8 million convertible bonds issued by UEL in October 2011 to
support the company's business expansion, and has been working with UEL
to capture the attractive growth opportunities in China's water industry.
UEL provides engineering services using membrane technology to municipal
and industrial waste water treatment projects, and also operates a
portfolio of waste water treatment plants across China.
"We are delighted to have KKR continue to invest in UEL to support our
strong growth. It is a clear indication that KKR is satisfied with UEL's
performance and is very confident in our growth potential. KKR has truly
demonstrated to be a long-term, value-added partner since their original
investment. Working with KKR, we are able to leverage their global
resources, operational capabilities with KKR Capstone and their China
team's local experience and track record of success," said Dr. Lin
Yucheng, Chairman and CEO of UEL. "With the additional capital, UEL is
well positioned to continue our growth and scale new heights in China's
water treatment space."
"KKR is excited to have the opportunity to increase our investment in
UEL," said David Liu, Member of KKR and CEO of KKR Greater China. "UEL
has an outstanding management team under Dr. Lin, with deep industry
knowledge and strong local expertise. We are delighted to further
strengthen our partnership with them and look forward to continuing to
utilize our global network and local expertise to support UEL's long
term growth and contribute to the overall environmental initiatives in
The offering price is S$0.50 per share, which represents an 8.5% premium
to S$0.461 per share, being the volume weighted average price for the
last 30 trading days. The proceeds will be used to fund the acquisition
of water treatment plants, upgrading of existing plants and Company's
The investment is expected to conclude by March 2013 and is subject to
customary conditions, including approval from UEL's shareholders. A
circular detailing the investment will be dispatched to UEL's
shareholders followed by an extraordinary general meeting to be held on
a date to be determined.
- The End —
ABOUT United Envirotech Ltd.
United Envirotech ("UEL") is a leading membrane-based water and waste
water treatment and recycling solutions provider in China's chemical,
petrochemical and municipal sectors. Its principle activities include
design, fabrication, installation and commissioning of water and waste
water systems using its proprietary advanced membrane technologies such
as the Membrane Bioreactor (MBR) technology. UEL has designed and built
several of the largest industrial and municipal wastewater treatment
plants in Asia using the MBR technology.
UEL undertakes both turnkey and water investment projects (TOT/BOT/BOO),
as well as provides treatment plant operation and maintenance services.
UEL serves a strong prominent customer base such as petrochemical giants
like China Petrochemical Corporation ("Sinopec"), China National
Petroleum Corporation ("CNPC"), China National Offshore Oil Corporation
("CNOOC") and Sembcorp Industries in Singapore.
UEL was listed on SGX Mainboard on 22 April 2004 and on the Taiwan Stock
Exchange on the 22 October 2010. For additional information, please
visit UEL's website at www.unitedenvirotech.com.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with US$66.3 billion in assets under
management as of September 30, 2012. With offices around the world,
including seven in Asia, KKR manages assets through a variety of
investment funds and accounts covering multiple asset classes. KKR seeks
to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its
investments. KKR complements its investment expertise and strengthens
interactions with investors through its client relationships and capital
markets platform. KKR & Co. L.P. is publicly traded on the New York
Stock Exchange (NYSE: KKR), and "KKR," as used in this release, includes
its subsidiaries, their managed investment funds and accounts, and/or
their affiliated investment vehicles, as appropriate. For additional
information, please visit KKR's website at www.kkr.com.
Key Media Contacts:
KKR (New York)
Kristi Huller, +1
212 230 9722
Alliance Consulting International (for KKR China and UEL)
Feng, +8610 6580 9510
Strategies Asia (for KKR Asia and UEL)
Nicholas Worley, +852 2894
Source: Kohlberg Kravis Roberts & Co. L.P.
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