Águas de Portugal to sell stake in Brazil’s Prolagos by end of year

16 February 2006

Lisbon, Portugal, 16 Feb – Portuguese water company Águas de Portugal (ADP) in June will begin the processing of selling its stake in Brazil’s Prolagos, which it expects to finish by the end of the year, said ADP’s chief financial officer (CFO), Justino Carlos.

Speaking to Portuguese financial daily, Diário Económico, Carlos did not disclose the potential value of the sale, but said that ADP’s investments in Prolagos since 1998 totaled 100 million euros.

The decision to give up its Brazilian investments had been made, Carlos, said, “But we have yet to decide whether we will sell the whole stake or just part of it.”

Prolagos has a 25 year concession for the sanitation system in the Lagos region of Rio de Janeiro, which serves some 390,000 people.

The terms of the concession are undergoing renegotiation, which ADP hopes will increase the value of the concession.

Carlos said ADP had been contacted by “numerous interested parties,” – national and international – although the outline of a deal had yet to be decided.

Last year, Prolagos posted a revenue increase of 3.5 percent, to 26.5 million euros and improved its net results, despite posting a loss of 13.1 million euros. (macauhub)