Dear Mr William Yeh of Yunnan Water Investment Co Ltd:
PJT is very supportive of YWI’s effort to purchase our incineration project in Phuket. This is the first and by far the largest scale incineration waste to energy project in Thailand. Yet, as I have explained to you in numerous occasions, that our project is a prototype in the Waste-To-Energy business in Thailand and in ASEAN. We have been approached and in discussions with purchasers from Thailand and the United States. For the American purchaser, they are particularly keen on the project because Covanta is Chong Qing San Feng’s partner. They know how Covanta delivers and operates their projects. Besides the American purchaser which is actively pursuing our project, we have received another solid interest yesterday from a strong purchaser from Japan. Although our discussion with them is initial, they do have the financing resources which gives us the confidence of matching or exceeding YWI’s current offer. And I am already leaving out the Chinese purchasers CMC and Eco Waste which also approached us.
I informed you this update for the reason that YWI already has signed the Conditional SPA with PJT. Accordingly, the earnest money should have been paid to PJT by now (due for September 7). While I understand that your organization prefers to complete the Due Diligence Report and pay earnest upon DD result, your suggested date of September 23 is too late for us to wait. You shall understand that PJT shall not risk losing other opportunities while the pace of DD report completion solely depends on the efficiency of your legal firm PWC. We are willing to provide Standard Charter Bank information and contact. My office has provided all the info requested by YWI and PWC. But a prolonged-delay of the earnest money is quite difficult for us to bear given there are other strong purchasers.
I have the trust that YWI is the right purchaser for us. We do not only aim at selling this project. We aim at partnering on other future projects with YWI as well. But further delay on earnest is not acceptable and we are seriously concerned that the lengthy DD process will delay the entire deal closure from what we have scheduled.
Sincerely