“SJW Group Announces Closing of the Sale of Texas Water Alliance Limited and Special Dividend”
SJW Group (NYSE: SJW) today announced the closing of the sale of its wholly-owned subsidiary, Texas Water Alliance Limited (“TWA”), to Guadalupe-Blanco River Authority (“GBRA”). As previously disclosed, on February 22, 2016, SJW Group entered into a Purchase and Sale Agreement with GBRA, pursuant to which SJW Group agreed to sell TWA to GBRA for $31,000,000. As provided in the Purchase and Sale Agreement, GBRA held back $3,000,000 (“Holdback Amount”) from the payment of the purchase price at the closing, which amount will be paid to SJW Group on June 30, 2021, subject to reduction under certain conditions. The transaction resulted in an estimated pre-tax gain on sale of $12,500,000, excluding the Holdback Amount, and net cash proceeds to SJW Group, net of the Holdback Amount, of approximately $23,500,000, including the deposit released to SJW Group in June 2017.
SJW Group announced that, in connection with the sale of TWA, the Board of Directors declared a special dividend in the amount of $0.17 per share, payable on December 11, 2017, to shareholders of record at the close of business on November 29, 2017. Such dividend brings the total 2017 dividend to $1.04 per share.
“We are very pleased with our partnership with the GBRA. I am confident that this source of water supply will benefit our Texas utility as well as many other utilities located in and around the high growth I-35 corridor of Central Texas,” said Eric W. Thornburg, President and Chief Executive Officer.
Thompson & Knight Partners Robert Eickenroht and Dean Hinderliter as well as Associate Monica Raspino advised SJW Group.