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DGAP-News: De Raj Group AG
/ Key word(s): Alliance
12.09.2019 / 08:00
The issuer is solely responsible for the content of this announcement.
Acquisition of Water Recycling in Namibia
Cologne, 12 September 2019: De Raj Group AG (ISIN: DE000A2GSWR1, Vienna Stock Exchange) has entered into an agreement to acquire an asset in water recycle / reuse space in Namibia. Construction of this asset was completed 4 years back and currently it is treating and meeting the municipality's required treatment standard to the extent that the municipality can reuse. This is a highly profitable business with an annual turnover of about EUR 4 mn and about 2/3rd of which is its EBITDA. The contract for this asset is valid for another 16 years. The acquisition is being financed through the bond issue led by ITI Capital Ltd.
More than 4 billion people across the world face severe water scarcity due to the withdrawal of more water than is sustainably available. In Africa, this reduced access to clean water sources not only impacts human welfare in urban and rural areas, it is also claiming wildlife species, fragile ecosystems, and, of course, communities that depend on them.
Especially Sub-Saharan Africa is experiencing acute water shortages due to erratic rainfall patterns and the increased frequency of droughts. Semi-arid regions (like the Western Cape of South Africa, where droughts are predicted to intensify under climate change) and wetter countries (like Nigeria, where many water resources are polluted) are affected equally.
Solutions to water scarcity increased the demand for new technologies, such as reuse of treated wastewater. Wastewater treatment involves cleaning, removing nutrients and discharging it back into rivers and lakes. Reuse may include irrigation of gardens and agricultural fields. It may also be directed toward fulfilling certain needs in residences (e.g. toilet flushing), businesses and industries and could even be treated to reach drinking water standards.
Namibia is one of the most arid countries in Sub-Saharan Africa. Raw water in Namibia is derived from surface water (roughly 70%) and from groundwater (roughly 30%). Unfortunately, a severe lack of rainfall (average 250 mm per year) and regular drought periods have left rivers low and dams empty. Currently the country is battling its worst drought in over 30 years.
De Raj Group AG plans to manage a Namibian based wastewater treatment plant that is currently in excellent condition and has been regularly maintained. The Group intends to expand the capacity of the plant after the acquisition process is complete.
The waste water plant uses a patented process in which the plant reclaims a variety of wastewater generated in plants and factories and purifies it into water of reusable quality for manufacturing or similar nature and this is a key initiative that is necessary for the development of industries and people's lives as well as the effective use of water resources.
Vaidyanathan Nateshan (CEO, De Raj Group AG) "This acquisition marks our foray into the water management and purification business. In line with our purpose of powering economic growth with a clear conscience to create enduring prosperity for everyone, we feel that the business of water management will generate a significant socio-economic impact on the world economy and we wish to be a part of that paradigm."
About DE RAJ
De Raj Group provides oil and gas services and renewable energy solutions to companies in Asia and Europe. The company provides various solutions for the monetization of oil and gas fields to national oil companies, oil field owners, and other technology companies. For more information please visit the corporate website: https://www.thederajgroup.com
De Raj Group (ISIN: DE000A2GSWR1) had initial listing at the EU-regulated Vienna Stock Exchange (IPO held in February 2018). De Raj Group shares are traded on the Open Market in Frankfurt / Main and XETRA since 23 March 2018.
For further information please contact
De Raj Group AG, Investor Relations, mailto: ir@thederajgroup.com
Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=ESPSNPULLI
Document title: DeRaj Namibia Watertreatment
12.09.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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