Veolia Water will acquire a controlling (58%) stake in Sofiyska Voda, the company operating water supply and treatment services for the city of Sofia in Bulgaria. In addition, Veolia Water will become the lead industrial shareholder, with a 26% stake in AS Tallinna Vesi, a company which provides water supply and treatment services for Tallinn, Estonia. Veolia Water will also take a 33% stake in Aqua SA, the company operating water supply and treatment services for the city of Bielsko Biala and its environs in southern Poland.
 

This new development in Central Europe, particularly with the city of Sofia, will be lodged with Veolia Voda, in which the EBRD has been a partner since 2007, and in which the IFC (International Financial Corporation) announced the acquisition of a 9.5% stake via a rights issue on June 2 this year.
 

The total acquisition price is approximately €199 million in enterprise value. Factoring in the IFC's entry into the capital of Veolia Voda plus the commitments made with the EBRD, the deal should have a total impact on net debt for 2010 of around €159 million.