Odebrecht S.A. signed today (Oct. 27) an agreement with Brookfield Brazil Capital Partners LLC and BR Ambiental Fundo de Investimento em Participações to divest its Environmental Business by selling its 70% interest in Odebrecht Ambiental. The FI-FGTS fund will continue to hold its 30% interest in the company.
The sale price was US$ 878 million (approximately R$ 2.8 billion), consisting of an upfront payment of US$ 768 million and an additional US$ 110 million over the next three years, subject to continued growth by the company. Financial closing of the transaction, expected in the first quarter of 2017, is subject to several customary conditions, such as consent from the partners and counterparties of Odebrecht Ambiental and regulatory approvals.
The Cetrel, Ecosteel Gestão de Águas and Ecosteel Gestão de Efluentes Industriais units, all of them belonging to the industrial water treatment division, are not included in the transaction and are being negotiated separately with other interested parties. Odebrecht S.A. will continue to prospect environmental projects in Latin America (except Brazil) and Africa.
Odebrecht Ambiental is the leading private company in Brazil’s water and sewage services sector, currently serving over 17 million people across 12 Brazilian states, through contracts for operating water supply and sewage systems and for the treatment of wastewater and industrial water. “The sale of Ambiental is part of our asset divestment program, aimed at maintaining satisfactory levels of liquidity to traverse the protracted economic crisis facing the country,” said the CFO of Odebrecht S.A., Marcela Drehmer.
Guaranteed management of assets and liquidity
Odebrecht S.A. plans to divest assets valued at more than R$ 12 billion by the middle of 2017. Some important negotiations have already been concluded. Odebrecht Latinvest, which owns highway concessions in Colombia and Peru, has sold 57% of the concessionaire Rutas de Lima, also to Brookfield. Odebrecht also announced the sale of Odebrecht Energias Alternativas, which holds the rights to the Senandes wind power corridor in the state of Rio Grande do Sul, to the NC Group. Odebrecht Transport, the mobility and logistics company of the group, has signed agreements with CCR by which it will transfer its interest in the concessionaires Via Rio, in Rio de Janeiro, and Via Quatro, which operates a subway line in São Paulo.
Negotiations are in an advanced stage for other assets, such as the Chaglla Hydroelectric Plant and Olmos Project in Peru, the interest held in Sociedade Mineira de Catoca, Angola, and in Santo Antonio Energia, Porto Velho (Rondônia), among others.