Thames Water Utility Van in London CTY, London on December 3, 2024. Thames Water Utilities Ltd is a large private utility responsible for water supply and wastewater treatment in most of London and surrounding areas in England. (Photo by Mike Kemp/image via Getty in the picture)
Mike Kemp | in pictures | Getty Images
Private equity investors KKR&CO. According to a person familiar with the matter, about £4 billion ($5 billion) will be provided to control the Thames water tools that Britain struggles with the management-led acquisition, a person familiar with the matter said.
The River Thames, the largest hydropower tool in the UK, serves about 16 million customers in London and the Thames River Valley, is full of intense debt and warned it will run out of cash by March 24 . The process of raising additional capital was eventually received in the announcement last week for the acquisition proposal for “number of parties”. Thames said it is studying every bid.
A source familiar with the matter told CNBC that Thames Water needs to restructure its debt and capital structure and will benefit from an active owner. As of September last year, the Thames owed about £16 billion in debt.
Sources said KKR’s involvement will include submissions submitted by £4 billion managers, which will not lead to asset sales or utility bankruptcy.
Thames River Water and KKR declined to comment.
Bloomberg reported earlier on Wednesday that KKR is willing to inject nearly £4 billion in majority stake into the Thames water.
KKR is a long-time investor in the UK, and has transferred more than £20 billion to the country since 1996. Private equity firms launched an infrastructure investment platform in 2008, seeking investments with a long-term investment scope.
The British High Court on Tuesday approved £3 billion of emergency funds from existing shareholder Thames Water, so that the utility breathing chamber can restructure its debts and secure new investors.
Thames Water is part of a group of companies known as the Kemble Water Group Owned by a consortium of institutional shareholders – Mainly pension funds and sovereign wealth funds. The largest shareholder is the Ontario Municipal Employee Retirement System, one of Canada’s largest pensions.
Utilities plagued by crisis Facing criticism of the sharp increase in sewage emissions The waterways entering the UK include the 215-mile long River Thames, which flows through the national capital.
-CNBC’s Jenni Reid and Sawdah Bhaimiya contributed to this report.
