Bouygues advances its strategy to exit the water sector

French construction giant Bouygues has taken a further step towards exiting the water sector, selling 35.7% of its subsidiary Finagestion to Emerging Capital Partners for an estimated €13 million. ECP now owns 65% of Finagestion, which acts as a holding company for the group’s water and power activities in Senegal and the Ivory Coast. Bouygues intends to sell a further 10-15% of its remaining holding to local investors later this month.

The deal will effectively end Bouygues’ exposure to the water sector, which began with the sale of Saur in 2005. The buyer, PAI Partners, refused to take on the group’s activities in Italy and Africa, and Bouygues has been gradually divesting these, selling Sigesa to Acea in 2005, and Siza Water to Cascal in 2007. A 29.3% stake in Finagestion was sold to ECP in July last year for €12 million.

Finagestion posted revenues of €280 million in 2008.