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UPDATE 1-Mota Engil wins Portugal EGF privatisation with 150 mln euro bid
September 18, 2014 / 2:02 PM / 3 years ago

UPDATE 1-Mota Engil wins Portugal EGF privatisation with 150 mln euro bid

(Adds details, share price)

LISBON, Sept 18 (Reuters) - The Portuguese government on Thursday named SUMA, a consortium led by the country’s Mota-Engil construction company, as the winning bidder in the privatisation of waste management firm EGF with an offer of 149.9 million euros ($193 million).

Environment minister Jorge Moreira da Silva told a briefing that the winning bid was 50 percent higher than the average evaluation of the company’s value, declaring the privatisation a success.

SUMA also comprises Spanish construction and services company Urbaser.

EGF controls around 60 percent of waste management services in Portugal.

Seven companies from six countries had competed to buy EGF in the initial phase, with three, including Spain’s FCC , reaching the final binding bidding stage.

An FCC official told Reuters earlier this month that it was trying to persuade the Portuguese government to hold a second bidding round between the two top contenders so it could outbid SUMA.

It argued its total bid, including 8.8 million euros to be paid to municipalities that are shareholders in some of EGF-controlled concessions, was just 200,000 euros behind SUMA‘s.

Mota-Engil shares were 4.2 percent higher at 5.385 euros by 1335 GMT, outperforming a 1.2 percent rise in the broader market in Lisbon.

The privatisation process was part of a sale of state assets required as a condition of Portugal’s three-year EU/IMF bailout, which ended in May.

Lisbon has raised around 9.4 billion euros via sell-offs since the start of its bailout in 2011, having overshot its privatisation target during the rescue programme.

Earlier this month, the state sold the last remaining 31.5 percent stake in postal firm CTT in the second and last stage of its privatisation, raising 343 million euros

A few privatisations have yet to be completed, including Portugal’s flag carrier TAP and some public transport companies and concessions.

1 US dollar = 0.7762 euro Reporting by Andrei Khalip, Editing by Axel Bugge and Mark Potter

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