RRJ takes $350m stake in China Everbright

The Hong Kong firm has taken a 7.84% stake ahead of the waste-to-energy company’s anticipated HK$3.66bn IPO.

In a deal worth just under $350 million, Hong Kong-based RRJ Capital has acquired 318,360,000 ordinary shares in China Everbright International, according to a shareholding disclosure with the Hong Kong Stock Exchange.

The firm paid HK$8.52 (€0.80; $1.10) per share in the business, taking the total investment value to about HK$2.7 billion for a 7.84 percent stake.

The investment was made from RRJ Capital Master Fund II.

China Everbright said earlier this week it had plans to raise HK$3.66 billion through a share sale on the Hong Kong stock exchange.

The waste-to-energy firm plans to issue 430 million new shares at HK$8.52 per share, a discount of about 4.38 percent to the company’s closing price of HK$8.91 on 9 December 2013, the last day before entering into the placing and subscription agreement.

Morgan Stanley is placing the sale for China Everbright.

RRJ made a similar investment on the Singapore stock exchange in October, pairing up with the China Investment Corporation to invest in SIIC Environment Holdings, Private Equity International reported earlier.

The firms were part of a larger S$263.5 million (€156 million; $212 million) deal, where the group took a total 36 percent stake in the water treatment business. RRJ and CIC hold 5.24 percent and 7.68 percent of the business respectively.

RRJ Capital is a Hong Kong-based private equity firm founded in 2011 by Richard Ong, one of the three co-founders of Hopu Investment Management. In 2012, the firm raised $5 billion for its second private equity fund, according to PEI’s Research & Analytics division.  Ong’s brother, Charles Ong, co-founded the firm and was formerly chief strategist at Singaporean sovereign wealth fund Temasek Holdings.