By Alex MacDonald
LONDON--Chilean copper producer Antofagasta PLC (ANTO.LN) said
Thursday it has agreed to sell its water division to Colombia's
Empresas Publicas de Medellin for 596 billion Chilean pesos ($960
million) in cash before taxes and transaction costs.
The sale is subject to certain conditions and is expected to be
completed by the end of May.
The water unit, known as Aguas de Antofagasta S.A., provides
potable desalinated water to domestic and commercial customers
under a 30-year concession in Chile's Antofagasta region. The
division contributed $63.6 million to Antofagasta's profit before
tax last year, with earnings before interest, taxes, depreciation
and amortization of $75.1 million. The division had gross assets of
$212 million as of the end of last year.
Antofagasta's chief executive, Diego Hernandez, said the sale
will allow Antofagasta to focus more closely on its mining business
and to advance its various development projects, whilst
strengthening its balance sheet.
Antofagasta's shares were up 4.2% at 775p a share as of 1343
GMT, while the FTSE 350 mining index was up 1.4%.
Write to Alex MacDonald at alex.macdonald@wsj.com
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