FCC - Aqualia, the third-largest water company in the world, has reached an agreement to sell 49% of water company SmVak, in the Czech Republic, to Mitsui for 97 million euro. The transaction includes SmVak's water and infrastructure development activities, conducted through FCC subsidiaries.

SmVak is the fourth-largest water company in the Czech Republic and a market leader in the northeastern region of Moravia-Silesia. It holds a full-cycle water concession for production and distribution of drinking water, discharge and treatment of waste water, and bulk water supply (including operation and maintenance, capital investment and billing and collection). The company has 1.3 million users and owns a 6,000 km supply network.

In 2012, SmVak's revenues amounted to around 108 million euro and EBITDA exceeded 42 million euro. The transaction is valued at 97 million euro.

The sale of this stake is in line with the divestments announced by FCC in its Strategic Plan, which calls for debt reduction by 2.2 billion euro, concentration on profitable businesses and geographic areas, and adjustments in structural costs.

Following the implementation of the Plan, FCC reached an agreement to sell 50% of its stake in Proactiva to Veolia for 150 million euro, and it has also sold its 39% stake in the South West Acute Hospital (Enniskillen, Northern Ireland) for 23 million euro. Other divestments in the period include Hotel Vela, in Barcelona, in which FCC had a stake of 25%, and Autopista del Valle, in Costa Rica, for 13 million euro.

This sale of 49% of the water business in the Czech Republic will contribute "to developing other projects aiming at improving the supply and sewage water network, treatment facilities and new water management concessions in other regions", according to the two companies.

Mitsui has expanded its water business over the years through various project activities including: participation in the Water Supply project in Izmit City, Turkey with UK company Thames Water Utilities Ltd. in 1995; investment in Thai Tap Water Supply Public Co., Ltd., the largest private water operator in Thailand, in 2006; acquisition of Mexican company Atlatec, S.A. de C.V. in 2008, which enabled Mitsui to obtain water treatment plant engineering, construction, and operation & maintenance capabilities; and establishment in 2010 of a 50:50 joint venture with Hyflux Ltd, which is currently operating 24 water treatment plants in China.

Source: FCC