According to the statement, the potential transaction serves to expand the presence and influence of the China Everbright group in Tianjin Municipality. The potential transaction provides a “solid foundation” for further waste water treatment projects to be undertaken by the group. According to China Everbright, the directors consider that the potential transaction will be entered into on “normal commercial terms”. “Taking into account the above reasons, the participation in the public tendering and the final bidding price are fair and reasonable and in the best interests of the company and its shareholders as a whole,” it says. Shares in China Everbright closed flat at 22.5 cents on Jan 8.