New | Originwater sells Yingde Gases stake to PAG, as private equity group homes in on full takeover
Transaction means PAG’s stake in Yingde has risen to at least 47.2pc, bringing it closer to the finishing line in protracted takeover battle for gas supplier
Beijing Originwater Technology, the sewage treatment company that last year was on the brink of taking over Yingde Gases Group, China’s third-largest industrial gases supplier, has sold its entire stake in the company to private equity firm PAG Asia Capital, according two financial executives familiar with the deal.
Originwater sold 79.67 million shares in Yingde at HK$6 (77 US cents) per share as a bloc transaction, representing its entire 4.2 per cent stake, the sewage company said on Monday in a filing with Shenzhen’s bourse. It did not reveal the identity of the buyer. But two people close to the deal said PAG Asia Capital is the buyer.
Originwater’s spokesman declined to comment.
PAG Asia Capital, whose HK$6 per share takeover offer for Yingde is the only binding one on the table, also declined to comment.
The transaction means PAG’s stake in Yingde has risen to at least 47.2 per cent, bringing it closer to the finishing line in the takeover battle. It needs more than 50 per cent to take full control.