SUEZ NWS Limited entered into a share and purchase agreement to acquire an additional 12.55% minority stake in Chongqing Derun Environment Co., Ltd. from NWS Holdings Limited (SEHK:659) for HKD 2.4 billion on January 11, 2021. The consideration is payable in cash. In a related transaction, SUEZ (Asia) Limited entered into a share and purchase agreement to acquire a 42% stake in SUEZ NWS Limited from NWS Holdings Limited for HKD 4.2 billion. Post transaction, NWS Holdings Limited will cease to have any interest in Chongqing Derun Environment Co., Ltd. and SUEZ NWS Limited will own 25.1% stake in Chongqing Derun Environment Co., Ltd. Chongqing Derun Environment Co., Ltd. reported profit before tax and profit after tax of HKD 146.6 million and net assets of HKD 1.21 billion for the year ended June 30, 2020. The transaction is subject to regulatory approval and other customary closing conditions as mentioned in agreement. 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 Chongqing Derun Environment and reducing the minority interests as regards to SUEZ NWS. The Hongkong and Shanghai Banking Corporation Limited acted as financial advisor to NWS Holdings Limited.