A consortium composed of Cheung Kong Infrastructure Holdings Ltd, Cheung Kong Holdings Ltd, Power Assets Ltd and Li Ka Shing Foundation Ltd said on Monday they will take over the Netherland's largest waste-to-energy company, RAV Water Treatment I BV, for EUR 943.7 million (USD 1.3bn).

The parties have signed a deal under which they will acquire RAV's owner, AVR-Afvalverwerking BV, through a joint venture (JV).

Both Cheung Kong Holdings and Cheung Kong Infrastructure will own 35% stakes in the new firm, with Power Assets and Li Ka Shing Foundation taking 20% and 10% interests, respectively. They will need to get the green light from the European Commission (EC) and the vendor's lenders prior to closing the transaction. The completion itself is expected on the eighth day after fulfillment or waiver of those conditions.

The seller is Van Gansewinkel Groep BV, a company owned by private equity firms CVC Capital Partners Ltd and KKR & Co LP.

RAV Water Treatment specialises in waste processing and supply of renewable energy from waste incineration. In 2012 it recorded an after-tax profit of EUR 42.3 million.

Source: Cheung Kong Holdings