(Reuters) – U.S. funding group KKR is in talks with troubled British utility Thames Water and its advisers about taking part in a 3 billion kilos ($3.88 billion) share sale which kinds a part of a wider recapitalisation plan, Sky Information reported on Saturday.
Thames Water didn’t instantly reply to a Reuters request for remark. KKR declined to remark.
Thames Water, which serves about 16 million folks in and round London, is on the centre of a disaster over sewage dumping, crumbling pipe networks and large money owed.
The utility, Britain’s greatest water provider, mentioned in October it had lined up a financing lifeline of as much as 3 billion kilos with a few of its collectors in a deal which if permitted will assist it survive for an additional 12 months a minimum of.
KKR is amongst a small variety of buyers learning Thames Water’s funds with a view to supporting a rescue share sale, the report mentioned, citing folks accustomed to the matter.
KKR’s choice hinges on a last dedication by water regulator Ofwat which is due by January on the newest, in line with the report. It was unclear which of KKR’s funds was taking part within the Thames Water equity-raise, Sky Information added.
Nonetheless, one impediment to KKR shopping for an enormous stake in Thames Water could also be its 25% holding in Northumbrian Water, the report mentioned.
Below Ofwat’s mergers regime, the Competitors and Markets Authority would wish to overview the deal, though there wouldn’t be an computerized prohibition, Sky Information mentioned.
The British authorities has been on standby to put Thames Water right into a particular administration regime given the chance of a monetary collapse.
($1 = 0.7736 kilos)
