Stake in Chile's Water Sector Acquired
Thames Water PLC
24 November 1999
THAMES WATER AND ELECTRICIDADE DE PORTUGAL
BUY STAKE IN CHILE'S WATER SECTOR
Thames Water and Electricidade de Portugal have today agreed
the purchase of a 45 per cent stake in the Chilean water and
wastewater services company Empresa de Servicios Sanitarios
del Libertador S.A. (ESSEL).
Located in the city of Rancagua, 50 miles south of the
capital, Santiago, the company serves a population of over
500,000 in Chile's sixth region.
The significant stake is being purchased for a consideration
of US$112.5m from the Government of Chile, via a consortium,
Inversiones Andes Sur ('IAS'). Thames Water and Electricidade
de Portugal (EDP) will hold equal shares in IAS.
ESSEL's customer base is mainly residential and this has been
increasing in terms of number of clients and sales volume
since 1995. In 1998 it had an annual revenue of US$19.5m,
which is expected to grow substantially from future price and
volume increases, and from the expansion of the underdeveloped
wastewater business. There are also major opportunities to
improve efficiency.
Bill Alexander, Thames Water's Chief Executive said: 'This
exciting development takes Thames Water into one of the
fastest growing regions for water services in the world and
provides a strategic platform for further growth in Latin
America. It is also a clear sign of the success of our
alliance with EDP.'
Mario Cristina de Sousa, EDP's Chairman said: 'This event
confirms the engagement of EDP in its diversification
strategy, which will add value for our shareholders. This
success is also a confirmation of the advantages of joining
the expertise and the international experience of both
partners.'
Thames Water is the UK's largest water and sewerage company,
serving 12 million customers in London and the Thames Valley.
Worldwide the company serves over 21 million people.
EDP is Portugal's electricity utility, generating,
transmitting and distributing electricity to more than five
million customers. Internationally, EDP is also involved in
power generation and distribution businesses, supplying more
than six million clients.
NOTE TO EDITORS
- Prior to the sale, the Chilean state held 99 per cent of
ESSEL through a holding company Corperacion de Fomento de
la Producion (CORFO). The remainder is owned by state
company Fisco de Chile. Within one year of the
completion of the transaction, CORFO will offer the
company's employees up to 10 per cent of ESSEL's
outstanding shares.
For further information please contact:
Thames Water's Press Office - Cathy Little 0118 959 3364; or
Alice Griffiths 0118 939 9274; Thames Water press releases can
be found on the internet: http://www.thames-
water.com/latest/lindex.html
EDP's Press Office - Borges Da Fonseca +351 21 720 2686/8 or
Fax +351 21 726 3471; or Salvador Peres
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