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SUEZ welcomes letter of intent from Ardian and GIP

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SUEZ welcomes letter of intent from Ardian and GIP

January 18, 2021 - 03:17
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PARIS, Jan. 17, 2021 (Press Release) -The Board of directors of SUEZ today received a letter of intent from Ardian and GIP (Global Infrastructure Partners), which would facilitate the emergence, and in a short time frame, of an amicable solution to the situation created by Veolia’s approach.

On such a basis, SUEZ is willing to open a dialogue with Veolia with the aim of building a solution in the interest of all concerned parties, which would reinforce both of the two French leaders in environmental services.

In the context of friendliness between SUEZ and Veolia and in all cases without dismantling SUEZ, the letter of intent paves the way to a global solution, through different  arrangements all with equivalent effect, including an offer by the investors for SUEZ’ shares at a price of EUR 18 per share (cum dividend). The proposal is subject in particular to the completion of confirmatory due diligence.

The Board of Directors of SUEZ met today and unanimously welcomed this approach which, as well as enabling an offer to all of SUEZ’ shareholders with a rapid execution, also:

  • reinforces both of the two French leaders in environmental services through a friendly solution,
  • protects employment in France and internationally during the current critical economic situation,
  • maintains necessary competition, notably in France
  • accelerates SUEZ’ growth strategy in key markets
  • increases SUEZ’ capacity to invest, notably in innovation and technology expertise
  • maintains a majority French shareholding structure with a significant increase in the Group’s employee shareholders.

Philippe VARIN, Chairman of the Board of Directors, noted:

The Board of Directors gives its unanimous support to the solution envisaged with the participation of responsible, long-term, top quality investors. It has mandated the Group’s CEO to continue to work to deliver it, including opening discussions with Veolia to reach a solution in line with SUEZ’ corporate interest.

Philippe Varin ,Chairman of the Board of Directors of SUEZ

Bertrand CAMUS, Chief Executive Officer, commented:

In keeping with our Purpose, SUEZ proposes, with the support of Ardian and GIP, to open a constructive dialogue with Veolia with the aim of building a solution in coherence with the strategies of both Groups, and which would reinforce both of the two French leaders in environmental services. This project has the support of SUEZ’ Board, its employee shareholders and the Group’s management: it respects the interests of all stakeholders - shareholders, employees and clients - in France and internationally.

Bertrand Camus ,Chief Executive Officer of SUEZ