Thames Water has reportedly received a last-minute takeover bid which would see the UK’s largest water supplier broken up and listed on the stock exchange.
British infrastructure investor Covalis tabled an offer ahead of Thursday’s deadline for indicative bids, according to the Financial Times.
Some £1 billion would be paid upfront, before a further £4 billion was raised through sales of Thames’ assets, refinancing and a stock market listing.
Billions of pounds worth of Thames’ assets could be sold, potentially including entire regions, as new owners worked to cut its near-£19 billion debt pile and stave off cash woes.
France’s Suez had also penned a deal with Covalis to aid the break-up but would not own any shares, with the UK government set to receive a seat on Thames’ board.
Hong Kong-based Northumbrian Water owner CK Infrastructure Holdings and Castle Water, co-owned by Conservative treasurer Graham Edwards, are also reportedly in the running as potential bidders for the crisis-hit supplier