South Korea’s IMM Investment Corp. has paid $40 million for a minority stake in Shanghai-based United Water Corp., China’s private water supplier. IMM made the investment on behalf of its $162 million seventh Green Infrastructure Fund.
United Water has 23 water infrastructure operations in 13 cities and in nine provinces in China. The operations are based on concession agreements with local governments that provide exclusivity and generate stable revenue streams.
The deal represents the first investment by a South Korean company in China’s infrastructure sector.
China has been developing the water treatment industry through various policies and incentives in order to resolve regional water requirements and meet the increasing expectations on water quality and demand, according to IMM. In recent years, the Chinese government has placed a more significant emphasis on improving water quality and thus has started to require more investment in infrastructure.
