Singapore's GIC invests in Equipav's water subsidiary
- Aegea Saneamento
- Government of Singapore Investment Corporation (GIC)
- Grupo Equipav
- International Finance Corporation (IFC)
Related M&A Transactions
Aegea Saneamento e Participações S.A., the water and sewage treatment arm of Grupo Equipav, has announced that it has signed an agreement with Singapore's sovereign wealth fund (GIC), by which GIC will subscribe to a capital increase of R$300 million (US$135.9 million) in the company.
The proceeds invested in Aegea will guarantee a strong capital structure adequate to suit Aegea's growth plans and to maintain the high quality management of current operations.
Upon closing of the transaction, the shareholders of Aegea will be Grupo Equipav, GIC and the International Finance Corporation (IFC).
José Carlos Toledo, President of Grupo Equipav's Board of Directors, said:
"The entrance of a partner of GIC's stature is a sign of recognition of the work being done by Aegea and of the potential of the sector in Brazil."
Mr Tay Lim Hock, President of GIC Special Investments, said:
"Aegea manages an attractive portfolio of water and sewage concessions in Brazil. We are delighted to have Equipav and IFC as our partners and look forward to working with the shareholders and management to help grow the company."
Aegea presented net revenues of R$ 390 million (US$176.6 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.