China Jinjiang Environment will buy 40.3 million new shares to be issued by Brazilian company Foxx URE-BA Ambiental Ltda for a cash payment of 38.5 million reals (about US$15 million), said the company, which transforms waste into electricity, in a statement released on Sunday.
The purchase of the shares will allow China Jinjiang Environment to have a controlling stake in the Brazilian company, with 51% of its extended share capital, leaving the remaining 49% in the hands of Foxx Innova Ambiental.
Foxx URE-BA Ambiental will build and operate a waste-fired power plant in Barueri, in the State of São Paulo, with a processing capacity of 825 tons per day. This project is the first public-private waste processing partnership in Brazil, according to the statement from the Chinese company.
China Jinjiang Environment said the project to build the plant will be paid for using its own resources and financing of 62 million reais provided by the International Finance Corporation (IFC) of the World Bank Group.
Meanwhile, China Jinjiang Environment Holding Company placed a 214 million new share issue with the Harvest Environmental Investment Fund, earning a total of US$81.2 million.
The Harvest Environmental Investment Fund is managed by Harvest Global Capital Investments Cayman, a wholly-owned subsidiary of Harvest Global Capital Investments. (macauhub)