Beijing Enterprises Weighs $2 Billion European Unit Sale
(Bloomberg) -- Beijing Enterprises Holdings Ltd. has considered a sale of its overseas waste treatment unit EEW Energy from Waste GmbH for about $2 billion, people with knowledge of the matter said.
The state-owned conglomerate had earlier asked investment banks to submit proposals for managing a sale of the unit, said the people, who asked not to be identified as the information is private.
Deliberations are at an early stage and Beijing Enterprises could decide to keep the business, the people said. A representative for Beijing Enterprises said in a response to questions that “there’s no such arrangement at the moment,” without elaborating.
Germany-based EEW Energy from Waste focuses on generating power from thermal recycling and disposal of waste. It has about 1,250 employees at its 18 waste-to-energy plants in the region, according to a June 30 press release. The company traces its roots back to 1873.
Beijing Enterprises in 2016 bought EEW Energy from Waste for about 1.4 billion euros ($1.6 billion). The state-owned enterprise was formed in 1997 and raised about HK$1.9 billion ($244 million) in an initial public offering in Hong Kong in the same year. Its businesses include natural gas, sewage treatment, waste treatment and beer. Beijing Yanjing Brewery Co. and Beijing Enterprises Water Group Ltd. are among its listed units.
Shares in Beijing Enterprises have fallen about 1.2% this year, giving it a market value of about $4.1 billion.
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