The transaction will contribute around €370 million1 to the Company's divestment program and, given its accounting treatment under IFRS5 at December 31, 2012, will reduce the company's debt by around 88 million euros in 2013.
This withdrawal reflects Veolia Water's decision to redirect its geographic focus and its growth strategy based on higher added value solutions and activities.
Finalization of the transaction is subject to obtaining formal approval from the relevant public authorities and Moroccan government departments.
Veolia has signed a three-year technical support contract with Actis. This contract will ensure the smooth transition of services, enabling Veolia to share its know-how and expertise in Morocco. The choice of Actis promises to bring high added value for Morocco; Actis has over 60 years of experience of investing exclusively in emerging markets, and particularly across Africa.
1Based on figures at December 31, 2012, exchange rate €/MAD of 11.17 and before transaction costs.
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release contains "forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties in particular include risks related to customary provisions of divesture transactions and those described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide reference in environmental solutions. With 220,000 employees*, the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in three complementary segments: water management, waste management and energy management. Veolia Environnement recorded revenue of €29.4 billion* in 2012.
(* ) Excluding VeoliaTransdev employees and revenues currently under divestment
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$5.2 billion funds under management. Combining the expertise of over 120 investment professionals on the ground in twelve countries, Actis identifies investment opportunities in three areas: private equity, infrastructure and real estate. With close to US$320m invested in North Africa, Actis is proud to actively and positively grow the value of its companies - ing local talent, serving the needs of consumers and contributing to broader society.
+33 (0)1 71 75 06 08
+ 33 (0)1 71 72 12 52
Claire Davies (UK)
+44 (0) 7887 321 993
Hatim Benjelloun (Morocco)
+212 522 99 14 60/35