The UK’s biggest water supplier has received another offer, despite declaring itself ‘non-investable’.
The latest bid for Thames Water came from infrastructure investor Covalis Capital, which would use French utility Suez, the company confirmed on Friday morning.
If agreed, the supplier could be split into smaller companies, the Financial Times reported, and Suez would be an operating partner, with the government holding a “golden share” with additional rights, including a seat on the board of directors. ‘administration.
Some of Thames Water’s assets would be sold and the remaining parts of the company listed on the stock exchange, the newspaper said.
Money blog: We don’t want ‘thoughtful’ alternatives to cash, say Brits
Thames Water provides water to 16 million Britons and is seeking £3bn of emergency funding to avoid running out of cash. The utility warned that its aging assets posed a “public safety risk.”
There were fears that Thames Water might short of money by Christmas – which would mean it could fall under special administration, a form of government ownership.
Please use Chrome browser for a more accessible video player
The cash-strapped company has struggled to secure new funds from existing shareholders after a promised £500 million investment was withdrawn amid a funding row with industry regulator Ofwat.
He had difficulty obtaining funds from existing donors, describing itself as “non-investable”.
Thames Water Faces millions in fines at Ofwat for polluting Britain’s waterways with sewage, which added to its £15 billion debt.
Earlier this year, its parent company defective on some of its loans.
Final bids are expected to be submitted in January after Ofwat determines how much water companies can increase bills and invest in system upgrades later this month.
Castle Water, controlled by Conservative Party treasurer Graham Edwards, is also in the running, according to Bloomberg.
Read more from Sky News:
Man jumps on polar bear to defend wife from attack
Scottish police abandon plans to ban beards
Covalis and Thames Water declined to comment. Suez said its offering is to “advise and assist Thames Water by leveraging Suez’s expertise in technical consultancy and organizational optimization”.
“At this stage, Suez’s scope of work is limited to an advisory role to ensure the success of the project and respond to the specific challenges encountered by Thames Water.”
Suez manages water infrastructure in France and has 5,000 employees in the United Kingdom.