Aegea Saneamento e Participações S.A. (“Aegea” and/or “Company”), the water and sewage treatment arm of Grupo Equipav, announces to the market that it has signed an agreement with GIC, by which GIC will subscribe to a capital increase of R$ 300 million in the Company.
The proceeds invested in Aegea will guarantee a strong capital structure adequate to suit the Company`s growth plans and to maintain the high quality management of current operations. This investment will also further strengthen the Aegea`s leading position in search of growth opportunities in the water and sewage treatment sector.
Grupo Equipav will not sell shares in this transaction, reiterating its long-term commitment to Aegea and the water and sewage treatment sector. Upon closing of the transaction, the shareholders of Aegea will be Grupo Equipav, GIC and the International Finance Corporation (“IFC”).
“The entrance of a partner of GIC’s stature is a sign of recognition of the work being done by Aegea and of the potential of the sector in Brazil. This motivates us to reach even higher growth, bringing quality of life to the population of the municipalities that we currently serve and that will be served in the future, contributing to close the water and sewage gap in Brazil. Sanitation is health.” said José Carlos Toledo, President of Grupo Equipav’s Board of Directors.
“Aegea manages an attractive portfolio of water and sewage concessions in Brazil. We are delighted to have Equipav and IFC as our partners and look forward to working with the shareholders and management to help grow the company,” said Mr Tay Lim Hock, President of GIC Special Investments.
“We are very pleased with the GIC’s investment. GIC is an important investment partner for IFC globally,” said Mr. Loy Pires, IFC Brazil Country Manager.
About GIC: GIC is among the world’s largest fund management companies. It was established in 1981 to manage Singapore’s foreign reserves. GIC strives to achieve good long-term returns on assets under its management, so as to preserve and enhance Singapore’s reserves. Since its inception, GIC has grown from managing a few billion dollars to well above US$100 billion today. GIC’s investment framework capitalises on its strengths which include the ability to take a long-term investment perspective, a global presence, capabilities to invest in cross-asset
opportunities, and a skilled and experienced team. It has investments across 40 countries and in assets such as equities, fixed income, real estate, private equity and infrastructure. GIC is headquartered in Singapore with a network of offices in nine cities worldwide.
About AEGEA Saneamento: Aegea, the water and sewage treatment arm of Grupo Equipav presented net revenues of R$ 390 million in 2012, representing a 19.3% increase compared to 2011’s results. Currently, Aegea holds a 15% share of the private market operating in 25 municipalities in five states: Mato Grosso, Mato Grosso do Sul, Rio de Janeiro, São Paulo and Santa Catarina. Aegea Saneamento has concessions in the municipalities of Piracicaba (SP), Campo Grande (MS); Cabo Frio, Armação dos Búzios, São Pedro da Aldeia, Iguaba Grande e Arraial do Cabo (RJ); Campo Verde, Primavera do Leste, Pedra Preta, Poconé, Jauru, Carlinda, Peixoto de Azevedo, Marcelândia, Santa Carmem, União do Sul, Vera, Sorriso, São José do Rio Claro, Nortelândia, Cláudia, Jangada, Porto Esperidião and Penha (SC).
About IFC: IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges.
Aegea and Grupo Equipav were advised by Itaú BBA and Inspire Capital along with Lefosse Advogados. GIC was advised by Souza, Cescon, Barrieu e Flesh Advogados.