Sacyr to sell environmental services arm: report

MADRID (Reuters) - Sacyr Vallehermoso (SVO.MC) has put its environmental services division Valoriza up for sale, in a deal worth around 1 billion euros ($1.47 billion), Spanish newspaper Expansion said on Tuesday, citing unnamed financial sources.

A spokesman for Sacyr declined to comment on the article and repeated comments from Sacyr Director Ana Maria del Pro on Monday that the company is analyzing investments and divestments as a means to improve value for its shareholders.

The Spanish builder and property developer is likely to use the funds to further cut its debt pile, which was 19.2 billion euros at the end of June.

Expansion said the sale process is being handled by Italy's Mediobanca (MDBI.MI) and has attracted the interest of companies such as Veolia (VIE.PA) and Aguas de Barcelona AGS.MC.

Veolia is a former partner of Spanish builder FCC (FCC.MC) in the environmental services business in Spain.

AGBAR was not immediately available for comment.

In April Sacyr sold its stake in French builder Eiffage (FOUG.PA), cutting borrowing by 6 percent.

At 5:24 a.m. EDT Sacyr Vallehermoso was up 4.20 percent at 13.40 euros per share, while the IBEX 35 leading share index was up 1.26 percent.

(Reporting by Jonathan Gleave; Editing by Sue Thomas)