United Envirotech

United Envirotech: KKR China Water (50/50 owned by CITIC Group and private equity fund KKR) has made a pre-conditional offer for UEL at $1.65 per share. The offer price presents a 13% premium over the last close and 2.3x P/B. Along with the offer, KKRCW will convert US$18.7m of its US$62.7m CBs into 50.1m new UEL shares and subscribe for another 30.3m, 60.6m or 90.9m placement shares (to be decided) at $1.65 The offer is also subject to a host of approvals from regulators and shareholders, including UEL having a minimum NAV of $304m. KKRCW has irrevocable undertakings representing 51% of post-conversion shares, including 21.4% from other key shareholders. It intends to retain the listing status of the company.