Thames Water has named KKR as its preferred bidder to take control of Britain’s biggest water supplier and help it avoid nationalisation.
The struggling utility company has been battling against financial collapse since last year. To survive beyond 2026, it needs £3bn (€3.58bn) of new equity and to restructure its debt.
In a statement issued today, Thames Water said KKR’s proposal includes financial metrics that indicate “a material impairment” to the utility’s top-ranking class-A debt, which is held by US investment groups such as Elliott Management and Pimco, as well as British asset managers such as Aberdeen. The utility added that discussions were ongoing between the parties, with no certainty that a deal would be done.
KKR emerged as the preferred partner from a list of six bidders that Thames Water said were interested in mid-March. It added that the timetable for the deal hinges on reaching agreement by the end of June and completing the deal in the second half of 2025.
The water utility said its focus remains on putting Thames Water “on a more stable financial foundation, implementing its turnaround plan and delivering a market-led solution that is in the best interests of customers, UK taxpayers and the wider economy”.
The company added that some senior creditors continued to progress “alternative transaction structures” for the recapitalisation in parallel with the talks with KKR.
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