FCC has formally completed the sale of a 49% stake in its Aqualia subsidiary to Australian fund IFM Investors for €1,024 million after receiving the green light from the European Commission (EC) on August 22t, in accordance with the merger regulation, and approval by the Federal Economic Competition Commission of Mexico on September 20.
Aqualia, as head of FCC’s water management area, plans to maintain its current strategy, operations and commercial relations (with public administrations, private customers, suppliers, etc.), while strengthening and developing new markets, benefitting from the active involvement of its new shareholder, the resulting synergies, and the continuity of the company’s current management.
Therefore, this operation enhances Aqualia’s capacity and is a testimony to the company’s track record and a recognition of its reputation as specialist and expert technology partner for administrations and industry in providing water management services.
This is IFM Investors’ first investment in a water management company in continental Europe, and its third globally. The Australian fund has amassed more than 15 years of experience in the sector, having invested in Wyuna Water (Australia) in 2003 and Anglian Water (UK) in 2006.
Accordingly, the new shareholder structure strengthens Aqualia’s board of directors, which will be chaired by FCC, composed by seven members; of which four will be designated by FCC and three by IFM.
FCC has used the disposal proceeds mostly to pay down financial debt at the parent by more than EUR 800 million and, coupled with the new funding raised, repay FCC, S.A.’s previous syndicated loan, the remaining of the proceeds from the sale will be used for corporate purposes.