Monadelphous Group Limited (ASX:MND) has announced it has entered into a binding agreement with Xiaoquing Environmental Protection Technology Company to sell a portion of a loan owed to the group by AnaeCo.

 

Monadelphous has agreed to sell $11.5 million of the loan, assigning its rights and obligations to the debt to Xiaoquing.

 

The group will retain its rights to the balance of the loan, which subject to shareholder approval, it will seek to convert to equity in AnaeCo.

 

If the conversion is approved, Monadelphous will hold 30 percent of AnaeCo’s issued share capital. 

 

Xiaoquing will seek to also convert its new debt to equity, subject to shareholder approval.

 

Monadelphous Group Limited reported a net profit of $37.7 million at 31 December 2015.