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CCCC Makes Great Breakthrough in Overseas Water Project Investment and Equity M&A of SAN LORENZO Water Supply Company in Brazil Completed
Date:2018-05-31 VisitCount: Font size:[ L M S ]
On May 29 local time, the Ceremony for Equity Transfer of SAN LORENZO Water Supply Company in Brazil was held in St. Paulo, Brazil. CGGC Brazil affiliated to CGGC Overseas Investment completed the equity transfer with Camargo Correa Group and Andrade Gutierrez Group, which marks that CGGC has officially become 100% holding shareholder of the SAN LORENZO Water Supply Project. This is another major achievement made by Chinese enterprise in the field of overseas water project investment under the context of the “Belt and Road” Initiative. Lin Xiaodan, General Manager of CGGC Overseas Investment and representatives of the transferor, St. Paulo Water Company, financing bank and the third-party agencies attended the transfer ceremony.
  

Scene of Transfer Ceremony

The City of St. Paulo, where the SAN LORENZO Water Supply Project is located, is the largest city in Brazil and an important economic center in South America. Nevertheless, acute shortage of water resources significantly limits its economic and social development. After the Project is completed and put into operation, its 410,00 t/d designed water supply capacity can satisfy the water demand of over 1.5 million people, making it an important infrastructure project that can significantly ease the problem of water shortage, accelerate local economic development and improve the people’s livelihood.

It is learnt that the SAN LORENZO Water Supply Project has obtained its franchise rights by means of PPP model-based public bidding, commenced in 2014 and is expected to be completed and put into commercial operation in August 2018. Camargo Correa Group and Andrade Gutierrez who possess the Project’s franchise rights are both famous infrastructure construction and operation contractors in Brazil, and intend to transfer all their equities in the Project to satisfy their business needs.

CGGC has paid close attention to and promoted the equity acquisition of the Project since May 2016. After nearly two years of efforts, CGGC has successively completed the due diligence and feasibility study, and obtained all kinds of approvals from relevant institutions in China and Brazil after nearly two years of endless endeavors. The Project ranked the 36th in the list of Top 100 cross-border M&As in China in 2017 jointly announced by Hurun Research Institute and Deal Globe. Before the transfer of the Project, CGGC has dispatched a professional team to strictly control key links such as construction progress and project quality, seamlessly communication and coordinate with all relevant subjects involved in project construction and operation, and worked out a special project operation planning scheme, laying a solid foundation for the orderly handover of the Project.

 

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