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Australian infrastructure fund Macquarie is selling off its 26 per cent holding in Thames Water for as much as £3 billion, according to weekend reports in the national media.
In May last year, Macquarie dismissed speculation in the national press that it was looking to sell off its shares in the water and sewerage company. However, Thames Water has confirmed that the latest reports are true.
The company said in a statement: “We remain focused on delivering first class water and sewerage services to our 15 million customers throughout the sales process.”
The Times reported that Macquarie has hired investment bank Nomura, to find a buyer. Nomura declined to comment.
According to the Telegraph, Thames’ existing shareholders – including BT pension fund, Abu Dhabi Investment Authority and the China Investment Corporation – will be given the opportunity to buy extra shares in the business ahead of external buyers.
Thames Water was bought for £8 billion from German firm RWE in 2006, by Kemble Water – a consortium of pensions and investment funds led by Macquarie.
Part of the expected £3 billion proceeds from the sale will be used to reduce Thames’ debts, and the rest will go to Macquarie and its partners.
Thames invests about £1 billion a year upgrading its sites and pipes. It supplies around 2,600 million litres of tap water to 9 million customers across London and the Thames Valley, as well as removing and treating more than 4 billion litres of sewage for 15 million customers.
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