Veolia Water to become large shareholder of Tallinna Vesi
14.06.2010, 14:59United Utilities announced today that it had agreed to sell its principal water interests in the United Kingdom and Europe that are not regulated by the British water regulator, including its indirect 26.5% shareholding in Tallinna Vesi, to Veolia Water UK Plc.
In connection with the deal, Veolia Water UK Plc will take over United Utilities' shareholding in United Utilities Tallinn B.V. United Utilities Tallinn B.V. owns 35,3% of the shares of Tallinna Vesi.
United Utilities Tallinn B.V. is 75% owned by United Utilities (indirect shareholding in Tallinna Vesi is 26.5%) and 25% is owned by the European Bank for Reconstruction and Development (indirect shareholding in Tallinna Vesi is 8.8%).
Veolia Water UK Plc is buying United Utilities' 75% shareholding and EBRD will retain its 25% stake in United Utilities Tallinn B.V. United Utilities will no longer have any shareholding in United Utilities Tallinn B.V. after the sale is completed.
Other assets transferred pursuant to the agreement with Veolia Water UK Plc include shareholdings of United Utilities in Sofiyska Voda AD in Bulgaria, Aqua Spolka Akcyina in Poland and holdings in various water undertakings in the UK.
The total transaction value is approximately GBP 174.2 million, comprising 108.6
million in cash on completion and 65.6 million in net debt assumed by the
purchaser. A further GBP 10 million in cash is payable on a deferred basis,
subject to certain contingencies.
Completion of the transaction is expected in the second half of 2010 and is
subject to a number of consents and regulatory approvals.