The Georgia Capital PLC (GCAP) has announced the US$180 million acquisition of a water utility Georgia Global Utilities JSC (GGU) by water management company FCC Aqualia and the proposed demerger by GGU of its renewable energy business to JSC Georgia Capital (JSC GCAP).

As a result of the demerger, GCAP JSC owns 100% of the renewable energy assets formerly owned by GGU and a 20% stake in GGU, which is dependent on the ongoing put/call option structure. The demerger was based on 2 conditions such as obtaining antitrust clearance and the redemption of GGU's US$250 million 7.750% Eurobond due 2025. JSC GCAP provided a shareholder loan in the amount of US$90 million, which was used to buy back Eurobonds.

The relationship between FCC Aqualia, GCAP SA and GGU will be governed by a shareholder agreement that governs their respective rights and obligations as co-owners of GGU.