Feb 15, 2017
Macquarie to complete sale of Thames Water stake
Macquarie, the Australian infrastructure bank, is hoping to complete the £1.5bn sale of its 26 per cent stake in Thames Water next month after the disposal was delayed by Britain's decision to leave the EU. Although shareholders including the BT pension fund, Abu Dhabi Investment Authority and China Investment Corporation, are understood to have declined their right of first refusal to buy the stake, a host of pension funds including Borealis and USS are thought to be in the running. Thames Water is Britain's biggest water supplier by customers and by value, with a regulatory capital value of £11.9bn. It provides about 2.6bn litres of tap water to about 9m customers per day in London and the Thames Valley region, as well as treating 4.4bn litres of sewage for customers. The sale, which is being handled by Nomura, comes 10 years after a consortium including Macquarie bought Thames Water from RWE for £8bn. The proceeds are expected to go to investors in the Macquarie Infrastructure and Real Assets managed funds. Thames Water is planning to raise customers' water bills from April next year to help pay for the tunnel. In addition to its stake in Thames Water, Macquarie managed funds own stakes in three UK power stations, airports and Arqiva, the mobile and TV mast company.
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