The vendor is Global Environment Investment.
The target company owns all of Global Environment Investment (HK), which in turn owns 92.15% of Fudan Water Engineering and Technology Co.
The target company and the HK company are investment holding companies.
Fudan Water operates about10 projects in Shanghai City, Jiangsu, Zhejiang and Guangdong provinces, with a planned water treatment capacity of over 1 million tons/day.
The vendor shall be paid in the following manner:
(a) RMB151,701,741 by cash as deposit; and
(b) the balance RMB917,118,259 by 1.56 billion new ordinary shares of SIIC Environment at an issue price of S$0.1320 per share.
The issue price represents a discount of 12.2% to the volume-weighted average price of SIIC shares traded on the SGX-ST on 24 March 2015, the full market day on which the sale and purchase agreement was signed.
The net profit attributable to the 92.15% equity interest in Fudan Water Group for 2014, based on PRC unaudited management accounts, amounted to RMB89.4 million.
Had the acquisition been effected on 1 January 2014, the earnings per share of SIIC would have risen from 2.90 RMB cents to 3.31 RMB cents.
That translates into a PE of about 23X based on the recent stock price of 16.4 cents.
For details see SIIC announcement here.