Tritech

Tritech: Tritech entered a non-binding MOU with Shandong Jining Water Supply Group (SJWSG) to acquire its 49% equity stake in Jining Zhongshan Public Utility Company (JZPUC). No consideration price has been stated at this point. As part of the consideration, Tritech proposed to issue a $42m 12% convertible loan, with the interest repaid via new shares at $0.28 apiece or 10% discount to the 7-day VWAP prior to the end of every six months after the loan drawdown. JZPUC is a JV owned by Shandong Jining (51%) and SJWSG (49%), which holds a 30-year operating license up to 2039 to treat and supply drinking water and waste water-treatment activities in Jining City. JZPUC holds four water supply plants and one water treatment plant, with ~300k cubic metres/day of water supply, ~200k cubic metres/day water treatment output and water supply pipelines extending more than 700km. As at 30 Jun '13, JZPUC has unaudited assets of Rmb990m and unaudited net assets of Rmb640m.