GS E&C Sells Water Treatment Subsidiary GS Inima to UAE State-Owned Firm for 1.7 Trillion KRW

Financial Structure Expected to Improve with Debt Reduction
New Business Strategy Focused on "Selection and Concentration"

GS Engineering & Construction (GS E&C) announced on the 24th that it has sold its entire stake in its water treatment subsidiary, GS Inima, to Abu Dhabi National Energy Company (TAQA), a state-owned energy company in the United Arab Emirates (UAE).

This transaction involves GS E&C selling all of its shares in GS Inima, which were held through its wholly owned subsidiary Global Water Solution, to TAQA. The deal is valued at approximately $1.2 billion (about 1.677 trillion KRW).

With the signing of the share purchase agreement, GS E&C plans to complete the sale process by the second half of next year, after obtaining regulatory approvals for each of GS Inima's overseas operations.

GS Inima, headquartered in Spain, was acquired by GS E&C in 2012. The company is engaged in desalination, wastewater treatment, and related infrastructure projects in Brazil, the Middle East, and Europe. Last year, GS Inima posted sales of approximately 573.6 billion KRW and a net profit of 55.8 billion KRW.

By securing liquidity of around 1.7 trillion KRW, GS E&C is expected to improve its financial structure by reducing its debt, which exceeded 6 trillion KRW last year, and lowering its debt ratio, which has been over 200%.

Additionally, GS E&C is establishing a foundation for sustainable management through a strategy of selection and concentration in new businesses. The company explained that the sale of GS Inima was carried out as part of a strategic reorganization of its business portfolio and a focus on core operations.

A GS E&C official stated, "Since joining GS E&C in 2012, GS Inima has achieved continuous growth and has become a leading company in the global water treatment market," adding, "This sale is part of GS E&C's strategy of selection and concentration, and we will do our best to expand our investment capacity in core areas and establish a foundation for sustainable growth."