Beijing Capital assesses sale of Singapore waste recycling unit

BEIJING (BLOOMBERG) – Beijing Capital Group plans to sell its waste management business in Singapore for up to US $ 500 million (S $ 683.9 million), according to people familiar with the matter.

The Chinese state-owned company is in talks with advisers to work on the potential divestiture of ECO Special Waste Management, the sources said, who asked not to be identified because the information is private.

Discussions are still in their infancy and Beijing may decide not to sell the company, they said. A representative from Beijing Capital did not immediately respond to requests for comment by phone and email.

The company is also considering the sale of a New Zealand-based unit, Beijing Capital Waste Management NZ, Bloomberg News reported in August.

Waste recycling companies have become increasingly popular among investors due to their strong cash flow as well as environmental benefits. The Macquarie Group’s infrastructure unit struck a deal in August to buy Australian waste management company Bingo Industries for around $ 1.9 billion, including debt. Buyout firm Platinum Equity bought Spanish waste management firm Urbaser from Chinese environmental services group China Tianying for an enterprise value of around $ 4.2 billion, finalizing the deal last month.

Beijing Capital acquired ECO Special Waste Management for $ 246 million in 2015. Founded in 1997, the Singaporean company provides industrial and commercial waste management, sludge treatment and specialized chemical recovery services, according to its website.