HONG KONG: Beijing Enterprises Water, a new entry in the environmental-services industry, said it is seeking acquisition opportunities in water-services businesses.

And as such, the company will spend 100 million yuan to acquire a stake in Guangxi Guigang Water.

Li Haifeng, vice president of Beijing Enterprises Water, said that as the prices of some projects have fallen as a result of the financial downturn, "the competition in acquisitions becomes less severe".

The stake acquisition in Guigang Water was passed in yesterday's special general meeting.

Beijing Enterprises Water will pay 50 million yuan to acquire a 66.67 percent stake in Guigang Water, which provides water supply and sewage treatment services in Guigang, a city in southern Guangxi Zhuang Autonomous Region bordering Vietnam.

The company will then inject 50 million yuan in additional capital into Guigang Water, bringing its stake in the company to 80 percent; the water deal will be settled by cash.

Li said after the meeting that the company sees good potential in the water-service market on the mainland, but no concrete plans can be disclosed.

Asked whether the company has set any requirements on the size of individual projects, Li said: "We have no ceilings", and added that the company will continue looking for water-service opportunities.

Besides Guigang Water, Beijing Enterprises Water agreed in September to acquire a 60-percent equity interest in Shenzhen Hua Qiang Chuang Xin Investment for 235.36 million yuan, entering the Shenzhen water-supply and water-treatment market.

(HK Edition 01/20/2009 page1)