Investor Presentaiton
Option
valuation
WATER UTILITY BUSINESS
VALUATION OVERVIEW
VALUE DEVELOPMENT OVERVIEW
(GEL MILLION)
697.0
GCAP and the majority shareholder have put and call options
for the minority 20% equity interest in the water utility business
GCAP'S PUT OPTION
8.25x
MAJORITY SHAREHOLDER'S
CALL OPTION
8.90x
EV/EBITDA
15.6
155.0
4.0
159.0
(557.6)
Exercisable in 2025-2026.
Equity value
31-Dec-21
Sale of 80%
equity interest
Put option
valuation in 2022
Equity value of
as of 31-Dec-22
Put option
valuation in 2023
Equity value of
as of 31-Dec-23
EV/EBITDA
Exercisable on the date of expiry
of the put option in 2026 and
expiring six months thereafter.
In 2022, GCAP completed the sale of 80% interest in Water Utility business for total consideration of US$ 180 million,
translating into MOIC of 2.7x in US$ (3.6x MOIC in GEL) and IRR of 20% in US$ (27% IRR in GEL).
In 2022, remaining 20% equity interest in business was valued with the application of put option valuation and positive
developments in the normalised¹ LTM EBITDA, leading to GEL 15.6 million value creation in the business.
In FY23, the fair value of GCAP's 20% holding in the water utility business, increased by GEL 4.0 million to GEL 159.0 million.
➤ In December 2023, revised tariffs were approved for the 2024-2026 regulatory period. These tariffs had previously been
factored into the valuation assessment of the water utility business, which remained unchanged in 4Q23.
Georgia Capital PLC | 1. Normalised for the items as set out in the terms of the disposal.
GEORGIA
CAPITAL
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