LONDON (ShareCast) - UK water group Severn Trent is to offload its loss-making water purification business to its joint venture partner Industrie De Nora.
The business, which provides disinfection and filtration technology solutions for the energy, marine and municipal markets, has been valued at £61.9m.

Severn Trent's share of £50.8m is to be settled through a cash payment of £12.6m with the balance settled with net intercompany debt. The company it will use the deal proceeds for "general corporate purposes".

Water purification operations, which were formed with Italy's Industrie De Nora back in 2002, had gross assets of £103.6m as of September 2014, but reported a loss of £39.2m in the last financial year.

Severn Trent said the sale will allow management to "focus on creating value" from its core activities.

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