Cascal

Cascal provides water and wastewater services to its customers in seven countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 3.6 million. (as of April 2008)

China Water Company and Yancheng Municipal Government

The China Water Company Limited is majority owned by Cascal which is part of the Biwater Group - a privately owned British company. With a turnover of $400m and more than 4500 staff, Biwater has a history of designing and building over 1000 water and wastewater systems in more than 90 countries around the world. Focusing on the ownership and long term operation of water infrastructure, Cascal is a market leader its sector with more than 15 project companies in 7 countries spread across 4 continents. As part of its long term growth strategy, China Water is working with the Yancheng Government to convert the state owned local water company into a Public Private Partnership (PPP). Through a competitive bidding process, China Water earned the right to acquire a 49 % stake in a new Equity Joint Venture which will be granted a 30 year concession to deliver water services in Yancheng City. In addition, China Water has proposed an improvement strategy designed to bring Yancheng's water service in line with 'best in class' standards. The new company will employ nearly 600 people over the first five years of operation; turnover over the same period is expected to be an average of Rmb 87.5 million per year. China Water

Cascal Announces Acquisition of Majority Stake in Zhumadian China Water Company

Cascal N.V., a leading provider of water services in seven countries, announced in June 2008 that its China Water subsidiary has signed an agreement to acquire a 51 percent stake in an Equity Joint Venture ("EJV") in Zhumadian City, Henan Province, China. The new joint venture company, Zhumadian China Water Company, which partners China Water with the Zhumadian Bangye Water Group, is expected to formally commence operations within the next few weeks, subject to regulatory approvals. Once the business license has been granted, the existing water supply assets of the Zhumadian Bangye Water Group will be transferred to the new EJV company and China Water will inject approximately USD$18 million in equity to acquire 51 percent of the EJV. The acquisition will expand Cascal's presence in China to more Than 1.5 million residents.

Cascal N.V. Completes Acquisition of 49% Stake in Yancheng China Water Company

Cascal N.V., a leading provider of water and wastewater services in seven countries, announced that its China Water subsidiary had acquired a 49 percent stake in an equity joint venture in Yancheng City, China. The new joint venture company, Yancheng China Water Company, which partners Cascal with the Municipality of Yancheng, will formally commence operations on May 1, 2008, for a period of 30 years. To complete the transaction, Cascal delivered the balance of the purchase consideration (total Rmb 200 million*) and Yancheng China Water Company received the required business license from the Yancheng Industrial and Commercial Administrative Bureau. Over the initial 3 years, Cascal expects the new joint venture company to achieve revenues rising from approximately Rmb 66 million to Rmb81 million and EBITDA margins improving from approximately 35% to greater than 40%. Cascal currently operates long-term projects in Fuzhou, Yanjiao, Xinmin, Qitaihe, and now Yancheng, and expects to complete another Chinese acquisition in the next few months.

Syndicate content