French utility Veolia to sell UK regulated water business to Rift Acquisitions for $1.92-bn
28 Jun 2012
French utility Veolia Environnement today said that it has agreed to sell its UK regulated water business to Rift Acquisitions Limited for £1.236 billion ($1.92 billion) in order to cut its debt by €1.45 billion ($1.81 billion).
In December 2011 Veolia, which is planning to reduce its debt to below €12 billion from €15 billion by the end of 2013, had announced a €5-billion divestment programme over 2012-2013.
Veolia, the world's largest environment utility in terms of revenue, is selling its UK regulated water business of its wholly-owned subsidiary, Veolia Water UK Plc.
Following completion of this transaction, Veolia Environnement's net debt will be reduced by around €1,450 million, said the Paris-based company in a statement.
The divested assets' operating cash flow was £105.5 million in 2011, while operating income was £74.9 million.
The Euronext Paris and the New York Stock Exchange-listed company said that it will retain a 10-per cent stake in the divested business for a period of at least 5 years, in addition to its non-regulated water business.
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