(12 January 2021, Hong Kong) NWS Holdings Limited (“NWS” or the “Group”; HK stock code: 659) announced today that after trading hours on 11 January 2021, it entered into the sale and purchase agreements for the disposal of its major assets in the Environment segment. The Group has agreed to dispose of (1) its entire 42% equity interests in SUEZ NWS Limited (“SNL”) to SUEZ Asia Limited at a consideration of HK$4,173 million; and (2) its entire 12.55% equity interests in Chongqing Derun Environment Company Limited (“Derun”) to SNL at a consideration of HK$2,360 million. The total consideration of the two transactions is HK$6,533 million.
With the proceeds from the disposals, the Group intends to boost investment in existing business segments such as roads and logistics, to proactively seize new investment opportunities in the Mainland and other markets, and as general working capital to support operations. Upon completion of the transactions, NWS will cease to have any equity interest in SNL and Derun.
Eric Ma, Chief Executive Officer of NWS, said, “The Group has been optimizing its business portfolio since 2018, with the aim of streamlining business structures and articulating a clearer corporate development strategy. The disposal of SNL and Derun is in line with the Group’s business optimization strategy, giving us an opportunity to unlock value from our assets and reallocate resources to focus on projects with growth potential, lucrative returns and steady cashflow. It allows us to achieve sustainable long-term growth and create value for all stakeholders in line with the overall strategic direction of the New World Group.”
Gilbert Ho, Executive Director of NWS, said, “Our business optimization strategy enables investors to see the intrinsic value in the Group’s extensive business portfolio. The Group has already recouped approximately HK$9 billion from the disposal of non-core assets in the past three financial years. The disposals will put the Group in a stronger financial position to boost investment in existing business segments and to seize new investment opportunities.”
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NWS Holdings Limited (Hong Kong Stock Code: 659), as the diversified industries flagship of New World Development Company Limited (Hong Kong Stock Code: 17), invests and operates a wide range of businesses predominantly in Hong Kong and the Mainland. Our core business includes toll roads, commercial aircraft leasing, construction and insurance, while we also manage a strategic portfolio spanning sectors from environment, logistics to facilities management. Please visit www.nws.com.hk for details.
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