We are FCC Nº21

Georgia is a country with a thriving economy, transparent and open to foreign investment. It is also a pre- ferential partner of the European Union (EU), with an Association Agreement in force since 2016. With a population of 3.7 million in - habitants, it receives eight million tourists a year and is among the A country with a thriving economy A two-phase agreement water Georgian Capital (GCAP) is Georgia’s largest investment group. It is listed on the London Stock Exchange, with a highly di - versified portfolio in sectors such as banking, insurance, health, pharmaceuticals, food and real estate, among others. The agreement signed by Aqualia and GCAP will be carried out over the course of 2022 in two pha- ses: in the first, scheduled to be completed by the end of January, Aqualia will have acquired 65% of the current GGU, which includes the water and renewable energy assets, for a price of 180 million US dollars. GGU has currently issued a USD 250 million green bond, which is expected to be paid off early. In a second phase, GCU will spin off the independent renewables assets, leaving in its perimeter only the water assets and four hy- droelectric plants associated with the water cycle infrastructures. At this point, Aqualia will have an 80% stake in the company. After the spin-off, GGU plans to issue a bond adjusted to the new scope of the company. In addition, Aqualia has granted GCAP a put option exercisable in 2025 or 2026, and GCAP has granted Aqualia a call option, exercisable on the expiry date of the put option period, for the remaining 20%. The amount of the transaction, USD 180 million for 80% of the company, implies a company valuation (EV) of 8.9 times EBITDA at the close of the current financial year 2021. countries with the highest busi- ness facilities (World Bank. Ease of Doing Business Rank) and in transparency (Transparency Inter- national IPC Rank) at similar or be - tter levels than several EU mem- ber countries. Tbilisi Rustavi Mtskheta Zhinvali B U S I N E S S 19 B U S I N E S S