Cox accelerates its water business with the entry into Green Atacama to build two desalination plants in Chile

It plans to start its ‘roadshow’ for the IPO in the first week of November

Oct. 29 () –

Cox has signed a binding agreement to become a shareholder of Green Atacama SpA, an entity dedicated to the identification and development of resilient agricultural ecosystems using disruptive water resources (such as seawater desalination), an operation that involves the purchase of two desalination plants to supplying 485,000 cubic meters of water per day in northern Chile and accelerating the company’s growth in the water business, the group reported.

Specifically, in the first phase, a desalination plant with 85,000 cubic meters of water per day would be built, to supply the mining companies in the region. The goal is for this plant to be ready for construction in 2025.

The second phase of the plan would consist of the development of an additional plant with a daily capacity of 400,000 cubic meters of water, which would be used to supply irrigation to the surrounding agricultural lands.

With this operation, Cox achieves 24% of its strategic objectives in this area of ​​water business for the period 2024-2027, with a planned total of two million cubic meters of water per day at the end of the period.

The company expects the plants to be supplied with energy produced by the 308 megawatt (MWp) Sol de Vallenar photovoltaic and battery plant, owned by Cox.

The company highlighted that this project would follow the business model called ‘Energy Follows Water’, “a key pillar of the company’s strategy and a milestone in terms of the production of desalinated water in a sustainable way.”

The president of Cox, Enrique Riquelme, highlighted that the entry into the capital of Green Atacama reinforces the group’s leadership in the water business, as well as “the commitments acquired within the strategy and positioning in the country.”

“Our extensive experience and deep knowledge of the water sector, together with our world-class engineering, will contribute fundamentally to meeting the water needs of the geographic areas where we are present,” he said.

On the other hand, Cox indicated that it continues conversations with investors to complete an initial public offering of its shares to qualified investors and aims “to begin its ‘roadshow’ in the first week of November.”

BINDING COMMITMENTS FOR UP TO ABOUT 80 MILLION.

Likewise, the company confirmed that it has received binding commitments from anchor investors – ‘cornerstone investors’, subject to the approval of the prospectus by the National Securities Market Commission (CNMV) and, in certain cases, to the confirmation of the ‘cornerstone relevant investor’ that he is satisfied with the content of the prospectus – for up to around €80 million.

Specifically, AMEA Power has committed to 30 million euros, Corporación Cunext with 20 million euros, Enrique Riquelme himself with 15 million euros, and Alberto Zardoya with between 5 and 10 million euros. Additionally, Cox continues to have the support of Attijariwafa Bank for up to five million euros, subject to compliance with applicable internal regulations and its approval processes, as well as local legislation.

The company’s IPO will be articulated through a placement of new shares, through a capital increase, with which it aims to raise some 300 million euros – including over-allotment -.