31st Dec 2021 12:09
(Alliance News) - Georgia Capital PLC on Friday said subsidiary JSC Georgia Capital has agreed to sell an initial 80% of water works Georgia Global Utilities JSC to FCC Aqualia.
Shares in Georgia Capital were up 11% at 711.40 pence on Friday in London.
The Tbilisi-based investor in businesses in Georgia said Aqualia and JSC Georgia Capital also have granted each other put and call options over the remaining 20% of the water utility.
For the initial 80% stake, Georgia Capital will receive USD180 million in cash. This values the entire water utility at USD225 million, a substantial premium to its latest independent investment value on June 30, Georgia Capital noted.
Georgia Capital said the disposal is consistent with its strategy of demonstrating the value and attractiveness of the group's investment portfolio through a trade sale. It will call a general meeting of shareholders for late January to approve the sale.
The company added it was the first time it had completed a full investment cycle for one of its main assets.
Georgia Capital said it intends to deploy the cash received in a combination of share buybacks, investments in securities, increasing its cash balance, further investments, and lending to portfolio companies.
By Heather Rydings; [email protected]
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