(News release)
PHOENIX, AZ, Sept. 25, 2013 /CNW/ – GWR Global Water Resources Corp. (TSX:GWR) (“GWRC”) today announced that Global Water Resources, Inc. (“Global Water”) has entered into an Agreement with EPCOR Water Arizona Inc. (“EPCOR”) to sell certain Global Water interests within the City of Glendale (“City”). EPCOR will purchase agreements that allow for the provision of wastewater and recycled water services to a 7,000-acre area known as the Loop 303 Corridor (“303 Corridor”). Global Water will receive total proceeds of $4.1 million over a multi-year period, including $2.6 million that will be realized during 2013.
Global Water entered into agreements with numerous landowners and the City in late 2012 to create a regional wastewater and recycled water solution for future development of the 303 Corridor. Since that time, Global Water has moved rapidly towards creating a new utility subsidiary (the “303 Utilities Company”), and had completed preliminary work related to master-planning and permitting requirements. With the Agreement, EPCOR will now take ownership of all completed work products and will assume Global Water’s obligations, rights, and interest in providing service to the 303 Corridor.
“This agreement is another step forward in our strategic plan to surface near term value for our shareholders,” said Trevor Hill, Chairman and CEO of Global Water. “After discussing this opportunity with all parties involved, it made sense to have EPCOR step into these contracts as they already provide water services for most of the area and can also fulfill the wastewater and recycled water obligations to the landowners and the City. The sale will allow Global Water to capitalize immediately on our many years of work in developing the basis of the regional wastewater solution.”
While the 303 Utilities Company was part of Global Water’s long term growth strategy, the opportunity to sell the related contracts is in-line with its current objectives including the liquidation of non-core assets where appropriate as to continuously improve cash flows for Global Water and its investors.
“EPCOR is committed to expanding on our utilities in the West Valley and to be the regional, integrated wastewater and water provider for the western area of Glendale,” said Joe Gysel, President of EPCOR Water (USA) Inc., the Phoenix-based parent company of EPCOR Water Arizona Inc. “We look forward to working in partnership with the City of Glendale and private landowners as the development of the Loop 303 Corridor and the West Valley continues.”
