Veolia becomes sole shareholder of Latin American water company

FCC will sell a 50% stake in Proactiva Medio Ambiente, an environmental services provider in Latin America, to French multinational Veolia Environnement for 150 million euro...

Global infrastructure and environmental services group FCC will sell a 50% stake in Proactiva Medio Ambiente, an environmental services provider in Latin America, to French multinational Veolia Environnement for 150 million euro.

As a result, Veolia Environnement will own 100% of Proactiva, This deal will provide FCC with capital gains of 81 million euro and advances its divestment plan.

Proactiva, created in 1999, was formerly a 50:50 joint venture between Veolia Environnement and FCC. It operates in eight countries (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela), serves more than 42 million customers and employs a staff of around 12,000.

Proactiva provides water management services in Guayaquil and Lima, and waste management services in Buenos Aires, Caracas, São Paulo and Santiago de Chile.

In 2012, the company obtained 540 million euro in revenues and 95 million euro in EBITDA (63.7 excluding minority interests), ending the year with net interest-bearing debt of 118 million euro. Net profit amounted to 13.9 million euro, of which 6.95 corresponded to FCC, which carried its 50% stake by the equity method.

The agreement with Veolia Environnement represents major progress under FCC's recently-announced Strategic Plan, which includes a series of divestments (including Proactiva) with a view to reducing Group debt by 2.2 billion euro. BBVA acted as FCC's financial adviser in this transaction.

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