Veolia Environnement has announced that it has agreed to sell today a majority stake in its UK regulated water businesses: Veolia Water Central, East and Southeast, to Rift Acquisitions Limited(a) for a total transaction value of £1,236 million(b) .
The group has retained its Veolia Water Outsourcing business which is a leading provider of outsourced services to the UK water industry.
Olivier Bret, Veolia Water Chief Executive Officer, said of the sale:
"The sale will reduce the capital intensity of the group and in doing so create a platform that will allow the company to wholly focus on its commercial outsourcing business and continue to provide a valued service to our clients and partners.
"The UK water sector is a strategically important market for Veolia Environnement and the group is committed to continuing the growth of Veolia Water and the Veolia Water Solutions & Technologies division in the UK.
"Selling the majority stake in our regulated water assets will bring Veolia Water UK in line with the Veolia Environnement operating model and enable multi-divisional environmental service offerings combining our group expertise in water, waste and energy. This will allow us to achieve our key ambitions for continued growth and service provision in the outsourcing arena."
Antoine Frerot, Chairman and Chief Executive Officer of Veolia Environnement, added:
"This first significant divestment shows that we are moving in the right direction regarding the implementation of our strategic plan and that the transformation of Veolia is progressing at a good pace."
As part of the sale, Veolia Water has retained a 10 per cent shareholding and has established an exchange agreement to ensure sharing of best practices and continued access to previously developed capabilities.
Notes to Editors:
For further information, please contact the Veolia Water communications team on +44 (0)207 843 8506 or visit our website www.veoliawater.co.uk.
Veolia Water provides water and wastewater management services throughout the UK and Ireland and is part of the world's leading water company. Veolia Water specialises in delivering integrated sustainable solutions that range from drinking water supply management and wastewater treatment to bespoke design solutions for business and industry.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide reference in environmental solutions. With more than 315,000 employees, the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of $46.5 billion in 2010.www.veolia.com
(a) Rift Acquisitions Limited is an acquisition entity formed by Infracapital Partners, the infrastructure investment fund managed by M&G (the European investment arm of Prudential plc) and Morgan Stanley Infrastructure Partners.
(b) On a regulated asset base of £948m at March 31, 2012
Veolia Water Outsourcing:
Future growth focus: