Affinity Water could be sold for £2bn

Strategic review by shareholders could result in the sale of Affinity Water

Affinity Water’s shareholders have announced a strategic review of their investment in the company, which could result in a sale.

Affinity is owned by a consortium of investors led by Infracapital Partners and North Haven Infrastructure Partners (formerly Morgan Stanley Infrastructure Partners). According to reports in the Sunday Times, the company could be sold for as much as £2 billion.

In a statement, an Affinity Water spokesperson said: “The ultimate shareholders of Affinity Water are undertaking a strategic review of their investment in Affinity Water, which may lead to the sale of some or all of their interests in the company. There is no certainty that the strategic review will result in any sale.

“Affinity Water and the company continue to operate in the ordinary course of business and there is no expectation that the strategic review or any resulting sale (if any) will result in any changes at an operational level at Affinity Water.

“An announcement will be made if an agreement is reached with any party for a sale of any interests in the company.”

Affinity provides on average 900 million litres of water each day to a population of more than 3.6 million people in parts of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey, the London Boroughs of Harrow and Hillingdon and parts of the London Boroughs of Barnet, Brent, Ealing and Enfield. It also supplies water to the Tendring peninsula in Essex and the Folkestone and Dover areas of Kent.

Infracapital Partners owns a 35 per cent stake in Affinity Water, while North Haven Infrastructure Partners owns 40 per cent. Its other shareholders are Beryl Datura Investment (10 per cent), Veolia Water UK (10 per cent), and Partners Group (5 per cent).