13th May 2015 06:20
LONDON (Alliance News) - Severn Trent PLC Wednesday said it is selling its water purification business to joint venture partner Industrie De Nora in a deal that values the whole unit at USD99 million and Severn Trent's share at USD81.2 million.
The water utility said its share will be settled by a cash payment of USD20.1 million, or GBP12.6 million, and the rest through the settlement of net intercompany debt. It expects the sale to complete at the end of June.
The water purification business had gross assets of GBP103.6 million as at September 30, 2014, and reported a loss before interest and tax in the 2014 financial year of GBP39.2 million including a goodwill impairment charge of GBP24.6 million.
Industrie De Nora is a privately-owned group headquartered in Milan, Italy. The Severn Trent De Nora joint venture has been in place since 2002, providing disinfection and filtration technology products for the onshore and offshore energy, marine and municipal markets.
By Steve McGrath; [email protected]; @stevemcgrath1
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