Nov. 1. 2010
Marubeni Corporation(“Marubeni”) and the Innovation Network Corporation of Japan (“INCJ”) agreed on the purchase of 100% stake of Aguas Nuevas (“AN”), the third largest water and sewerage utility in Chile, from Capital Riesgo Global Co.(“CRG”), a subsidiary of the Spanish Santander Bank. Marubeni and INCJ will each make 50% investment.
AN is the third largest water company in the country following the Suez Group of France and Canadian Pension Fund (OTPP). AN has three subsidiary water companies; Aguas del Altiplano (“AdA”), Aguas Araucania (“AA”) and Aguas Magallanes(“AM”) and provides a full water services (including water and sewerage service, the operation and maintenance of water and sewage network) in 48 cities within Chile’s Region 1, Region 9, Region 12, and Region 15. The major assets of the AN group include 33 water treatment plants (including desalination plants), 39 sewage plants, and approximately 3,500km length of water network and 2,900km of sewage network. AdA, AA, and AM possess a concession contract with Chile’s government agency lasting until 2034, and currently supplies water to a total of 1,200,000 population.
Marubeni acquired 100% stake in Aguas Decima (“AD”) in October, 2006, and AN will be our second acquisition in Chilean water industry. As same as the UK water and sewage industry, the water and sewage industry in Chile admits full privatization by law and is considered as one of the world’s most open market. In July, 2009, Marubeni also made an investment in the Peruvian water market, obtaining stakes in Consorcio Agua Azul, who operates water treatment BTO project in Lima. After the acquisition of AN, Marubeni expects the synergy with AD and plans to utilize the management know-how of AN in order to built up further assets in the water industry and considers AN as a platform in Marubeni’s future development in the Latin American water market.
Marubeni recognizes that Water business is considered as an important business field relating to all four of Marubeni’s priority business fields, “Infrastructure”, “Natural Resources”, “Essential Living Commodities” and “Environment”. Marubeni aims to become a member of world’s top 10 company within the next 3 years in the water market which is expected to become a 100 trillion yen market scale in future.
For this transaction, Marubeni has retained Celfin Capital and Deloitte Chile as financial advisor, Honorato Russi y Eguiguren Cia. as legal advisor and DyH as its technical advisor.
Company Profile of AN
Employee: 740 person
Sales: CLP66,531million(11.3 billion yen)
Capital: CLP397,706million(67.6 billion yen)
Stockholder: Santander Bank
Company Profile of Seller
Seller:Capital Riesgo Global(100% Subsidiary of Santander Bank)
Capital: EUR568million(68.2 billion yen)
Major Business: Industrial Investments
Company Profile of INCJ
Foundation: July, 2009
Representative: President Kimikazu Noumi
Capital: 92 billion yen