China Everbright International has agreed a reverse takeover of Singapore-listed HanKore Environment Tech Group, in which it will transfer water treatment assets to HanKore in return for $1.2 billion in shares.

After the deal, China Everbright will hold 78% of Hankore shares, and will rename the Singapore water treatment firm China Everbright Water, Hankore said in a statement late on Monday.

Once the takeover is completed, the company will own a total of 32 waste-water treatment plans and four reusable water projects. HanKore said the aim is for the new company to become one of the biggest waste water treatment firms in China.

HanKore shares were down 2.1% in early Tuesday trade.