The Transaction provides for an initial purchase price of
FI-FGTS, the investment arm of
"Our acquisition of Odebrecht Ambiental is an exciting opportunity for us to own a high quality water services platform in an emerging market, including an industry leading municipal water and wastewater business with scale and strong growth potential," said Cyrus Madon, CEO of Brookfield Business Partners. "It is a great addition to our diversified portfolio of high quality businesses with solid long-term fundamentals and reflects
Investment Highlights
-- Compelling market dynamics. Despite being the seventh largest economy in
the world, many areas of Brazil are in critical need of improved water
management and wastewater collection and treatment coverage.
-- Opportunity for growth. Asset portfolio encompasses all stages of a
project's lifecycle, with mature operating projects complemented by a
range of late to early stage development projects providing for a robust
pipeline to support future growth.
-- Attractive future cash flow. Cash flow is expected to grow given
significant planned investment under existing contracts and future
development opportunities.
-- Diverse asset base. Existing portfolio comprises 22 municipal systems
with coverage of more than 17 million people, as well as 4 industrial
water treatment systems with "take-or-pay" contracts.
Business Overview
Odebrecht Ambiental is the largest private water services company in
Funding
Brookfield Business Partners will commit to fund up to 52% of the purchase price on closing, or
Prior to or following closing, a portion of Brookfield Business Partners' investment may be syndicated to other institutional investors, with an expectation that we will retain an ownership in the business of at least 30%.
Transaction Process
Closing of the Transaction remains subject to a number of conditions, including (among others) obtaining the consent of certain of Odebrecht Ambiental's partners and counterparties. The Transaction is also subject to a number of other customary conditions, including regulatory approvals. Closing of the Transaction is targeted for the first quarter of 2017.
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with approximately
For more information, please visit our website at www.brookfieldbusinesspartners.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of Section 27A of the
Although we believe that the forward-looking statements we make are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Business Partners are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond our control. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements in this news release include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits and in particular completion of the acquisition referred to in this news release, which cannot be assured; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Business Partners undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
Contacts: Media: Claire Holland Tel: (416) 369-8236 Email: [email protected] Investors: Jennifer Ritchie Tel: (416) 956-5230 Email: [email protected]
Source: Brookfield Business Partners
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