Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080614/article_363147.htm
Beijing Enterprises Water Group Ltd Suffers biggest one-day drop
Created: 2008-6-14
BEIJING Enterprises Water Group Ltd, a new entrant to the environmental services industry, had its biggest one-day drop in more than 15 years in Hong Kong trading after announcing the acquisition of a sewage treatment company.
The stock plunged 47 percent to HK$1.94 in Hong Kong trading yesterday, as the benchmark Hang Seng Index fell 1.9 percent. The decline was the biggest since January 1993. Even after the decline, Beijing Enterprises Water has more than doubled this year, versus the benchmark's 19-percent drop.
The company said yesterday that it will buy a stake in ZKC Environmental Group Co, a company handling waste water treatment in the Chinese mainland, for HK$1.37 billion (US$175 million) to expand into the environmental business.
The company will issue shares and convertible bonds to pay for the purchase, the statement said. Beijing Enterprises is also assessing other waste water ventures.
The stock plunged 47 percent to HK$1.94 in Hong Kong trading yesterday, as the benchmark Hang Seng Index fell 1.9 percent. The decline was the biggest since January 1993. Even after the decline, Beijing Enterprises Water has more than doubled this year, versus the benchmark's 19-percent drop.
The company said yesterday that it will buy a stake in ZKC Environmental Group Co, a company handling waste water treatment in the Chinese mainland, for HK$1.37 billion (US$175 million) to expand into the environmental business.
The company will issue shares and convertible bonds to pay for the purchase, the statement said. Beijing Enterprises is also assessing other waste water ventures.
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