UpdateBeijing Enterprises fails to impress investors with maiden overseas acquisition
Shares tumble after it agrees to pay 1.44 billion euros for two German operators of waste-to-energy projects
Shares of Beijing Enterprises (BJE) tumbled as much as 10.4 per cent after it agreed to pay 1.44 billion euros for two German operators of waste-to-energy projects in its maiden overseas acquisition.
But BJE, the Hong Kong-listed investment arm of the Beijing municipal government in the gas distribution, water treatment and brewery businesses, said it may sell over 50 per cent of the companies – EEW Holding and M+E Holding – to be acquired.
It plans to invite “strategic investors” on the basis that it remains the single largest shareholder, the company said in a filing to Hong Kong’s bourse late on Thursday.
“The acquisition represents an opportunity for the group to expand its [waste-to-energy] business, and allows the group to consolidate and enhance its industry position, while introducing advanced
management expertise and related technologies to the [China] market, thereby improving
management and operational standards in the industry in China,” it said.
The deal’s announcement has not won investors’ hearts though. Beijing Enterprises’ shares closed down 7.6 per cent at HK$35.15 on Friday.