Georgia Global Utilities (GGU), a fully owned subsidiary of Georgia Capital (GCAP), owns and operates a staggering number of water infrastructure assets: a dam and reservoir with a capacity of 520 Hm3, 7 drinking water treatment plants (DWTP), 1 wastewater treatment plant (WWTP), 58 pumping stations, 118 reservoirs, 4,300 km of distribution networks, and 1,700 km of sewerage. It also owns and operates renewable energy generation assets with an installed capacity of 240 MW in 9 mainly hydroelectric plants, some of them associated with the water cycle assets (150 MW) and others independent (90 MW).
Aqualia and GCAP had reached an agreement whereby the acquisition would be implemented in two phases during 2022: In the first phase, which is expected to be completed by the end of January, Aqualia will acquire 65 percent of the existing GGU, which will include the water and renewable energy assets, for a price of $180 million USD.
In a second phase, GGU will spin off the independent renewable assets, leaving only the water assets (and 4 hydroelectric plants associated with the water cycle infrastructures) in the perimeter of GGU, bringing Aqualia's shareholding to 80 percent of GGU.
The amount of the transaction would total to $180 million USD for 80 percent of the company.
Georgia Capital is Georgia's largest investment group, listed on the London Stock Exchange, with a highly diversified portfolio in sectors such as banking, insurance, healthcare, retail pharmacy, food, and real estate, among others.
Commenting on the deal, Irakli Gilauri, Chairman and CEO of GCAP said: "This is an important milestone for Georgia Capital and marks the achievement of a key strategic priority with the successful completion of the full investment cycle of our strategy: invest, grow and monetise through a cash exit".
Felix Parra, CEO of Aqualia, said: "Aqualia's interest in Georgia and the Tbilisi water system goes back a long way, as we participated in the first privatisation process of the water supply and sanitation system in 2008, and we have followed closely and with interest the evolution of the asset to date".
Aqualia is the water management company owned by the citizen services group FCC (51 percent) and the Australian ethical fund IFM Investors (49 percent). The company is the fourth largest water company in Europe by population served and the ninth largest in the world, according to the latest Global Water Intelligence ranking in March 2021.
