SUEZ (Asia) Limited entered into an agreement to acquire 42% stake in SUEZ NWS Limited from NWS Holdings Limited (SEHK:659) for HKD 4.2 billion on January 11, 2021. The consideration is payable in cash. In a related transaction, SUEZ NWS Limited entered into an agreement to acquire an additional 12.6% stake in Chongqing Derun Environment Co., Ltd. for HKD 2.4 billion. The transaction is conditional upon the obtaining of the requisite written consent or approval from the relevant department of the Government of Hong Kong relating to the proposed change of shareholding in SNL, as required under the undertakings given by SUEZ or SUEZ Groupe and NWS in favour of the Government of Hong Kong under certain project contracts of SNL Group in Hong Kong, SNL having paid to its shareholders on a pro rata basis, a special dividend of HKD 380 million within five business days following the passing of the relevant board resolutions, NWS Holdings having delivered to SUEZ Asia a written consent from NWS authorizing the use of certain trademarks of NWS by SNL and its subsidiaries and affiliates during a transitional period after the SNL Completion and, in any event, such period shall not be more than six months from the date of the SNL Completion and the termination of certain secondment agreements between a member of NWS Group and SNL. The transaction is expected to close by first quarter of 2021. The net proceeds to be received by NWS Group from the Disposals will be applied towards investing into NWS Group’s existing business segments such as roads and logistics; other investments of attractive return and with synergies to its core business when such opportunities arise; and general working capital requirements of NWS Group. The transactions will be accretive to recurring net income and recurring FCF from completion, both by increasing the income from associates as regards to Suyu and reducing the minority interests as regards to SUEZ NWS. HSBC acted as financial advisor to NWS Holdings.