Actis, the emerging markets-focused private equity and infrastructure fund manager, has agreed to acquire Moroccan water, wastewater and electricity services from Veolia Services à l’Environnement Maroc, a holding company of France’s Veolia Environnement.
Veolia said the sale of the services, which are operated by concession companies Redal and Amendis, will contribute around €370 million to its divestment programme (pre-transaction costs and based on figures and exchange rates at the end of last year).
In a statement, Veolia Environnement said the sale reflected Veolia Water’s decision to redirect its geographic focus and growth strategy based on “higher added value solutions and activities”. It said the sale would reduce company debt by around €88 million in 2013.
As part of the deal, Veolia has signed a three-year technical support contract with Actis to “ensure the smooth transition of services, enabling Veolia to share its know-how and expertise in Morocco”.
Completion of the transaction is subject to formal approval from relevant public authorities and Moroccan government departments.
Last November, Actis portfolio company Umeme – a Ugandan electricity company – saw its IPO more than 35 percent oversubscribed. The deal helped Actis to Infrastructure Investor’s African infrastructure fund manager of the year award for 2012.