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Spain's FCC among bidders for Portugal's EGF: sources
May 27, 2014 / 11:30 AM / 3 years ago

Spain's FCC among bidders for Portugal's EGF: sources

MADRID/LISBON (Reuters) - Spanish construction group FCC is among seven companies that have presented non-binding bids to buy Portuguese waste management company Empresa Geral do Fomento (EGF), two sources said on Tuesday.

FCC is in talks with potential Portuguese partners to form a consortium to present a binding offer for state-owned EGF, which manages municipal waste removal and treatment businesses, a source close to the Spanish company said.

A second source with knowledge of the situation said the bids presented were for more than 100 million euros ($136.52 million).

Consultancy firm Roland Berger initially valued EGF at between 140 million euros and 200 million euros.

Portugal’s government approved the privatization of EGF, a subsidiary of Aguas de Portugal, in January as part of an asset sale programme to meet the terms of the EU-IMF bailout the country exited this month.

Portugal’s Supreme Administrative Court last week issued an injunction to suspend the sale, supporting six town halls which had appealed the privatization.

The government has until the end of the month to present its arguments to the court. It expects the sale to complete this year.

Portugal has driven through privatizations worth more than 8 billion euros, including sales of power firms EDP and REN.

FCC, which refinanced 4.5 billion euros ($6.14 billion) of debt in April, is itself looking to sell 500 million euros of assets but has said it is interested in “very selective” purchases that add value to the company.

It considers environmental services core to its business and already has a small presence in Portugal collecting rubbish for town halls.

Reporting By Teresa Larraz in Madrid and Andrei Khalip in Lisbon; Writing by Sarah Morris; Editing by Louise Heavens

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