Zhonghuan Hengrun is a limited liability company incorporated in Beijing with a paid-up registered capital of RMB5 million. Zhonghuan Hengrun shall also pay a sum of RMB12.94 million for Xinnuo Water to settle outstanding bank loan of RMB12.45 million and other payables of RMB486,500, it said. The execution of the FA will allow Sino Water to divest its loss making subsidiary in China and limit the group's losses arising from this investment as Puncak Niaga intends to exit its business in China. The original investment cost of Sino Water was RM23.9 million on July 2, 2008, it added. Puncak Niaga fell 2 sen or 1.8% to close at RM1.09 for a market capitalisation of RM487.5 million.

Source: The Edge Markets October 31, 2016 12:37 UTC