Thames Water Chooses KKR as Preferred Bidder in Equity-Raising Process

Thames Water, the largest water utility in the UK, has designated the American private equity firm KKR as its preferred bidder in its ongoing efforts to secure funding while avoiding potential renationalisation. This decision emphasizes the company’s strategic move to draw significant investment amid challenging financial circumstances.

KKR’s Investment Proposal

Earlier this year, KKR submitted an initial bid valued at approximately £4 billion for a stake in Thames Water. This bid has led to negotiations, and following the evaluation of various proposals, Thames Water has now stepped forward to engage KKR as the key participant in the next phase of its equity-raising activities.

Competitive Landscape

Thames Water’s decision to select KKR leaves behind other potential bidders, such as Covalis, Castle Water, and CK Infrastructure, who will not advance in the bidding process at this time. A source with inside knowledge of the company confirmed this direction, indicating a clear preference towards KKR’s proposal during the critical diligence stage.

Future Prospects

While KKR has been chosen to proceed, it is important to note that Thames Water has stated that there is no guarantee a binding agreement will emerge from these discussions. This statement serves as a reminder of the uncertainties that continue to surround the bidding and investment context within the water utility sector.

Ongoing Situation

The situation remains fluid, and as development unfolds, stakeholders will be closely watching how this investment process progresses and what it could mean for the future of Thames Water. For now, the company is navigating complex market conditions as it seeks to solidify its financial standing without ceding control back to the government.

This is a developing story, and further updates will be provided as more information comes to light.