Stock

KKR exploring investment in Thames Water share plan, Sky News reports

(Reuters) -U.S. investment group KKR is in talks with troubled British utility Thames Water and its advisers about participating in a 3 billion pounds ($3.88 billion) share sale which forms part of a wider recapitalisation plan, Sky News reported on Saturday.

Both Thames Water and KKR declined to comment.

Thames Water, which serves about 16 million people in and around London, is at the centre of a crisis over sewage dumping, crumbling pipe networks and huge debts.

The utility, Britain’s biggest water supplier, said in October it had lined up a financing lifeline of up to 3 billion pounds with some of its creditors in a deal which if approved will help it survive for another year at least.

KKR is among a small number of investors studying Thames Water’s finances with a view to supporting a rescue share sale, the report said, citing people familiar with the matter.

KKR’s decision hinges on a final determination by water regulator Ofwat which is due by January at the latest, according to the report. It was unclear which of KKR’s funds was participating in the Thames Water equity-raise, Sky News added.

However, one obstacle to KKR buying a big stake in Thames Water may be its 25% holding in Northumbrian Water, the report said.

Under Ofwat’s mergers regime, the Competition and Markets Authority would need to review the deal, although there would not be an automatic prohibition, Sky News said.

The British government has been on standby to place Thames Water into a special administration regime given the risk of a financial collapse.

($1 = 0.7736 pounds)

This post appeared first on investing.com

You May Also Like

Editor's Pick

Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

Latest News

A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

Economy

A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

Investing

Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 balanceandcharge.com

Exit mobile version