Yorkshire Water seeks more than £1bn from investors
Yorkshire Water, one of the UK’s biggest water companies, has tapped shareholders for £940mn to shore up its fragile balance sheet.
The company, which serves 2.3mn households and 130,000 businesses in north-west England, had been under scrutiny from water regulator Ofwat, which raised concerns over its “financial health” in its annual report on the industry last year.
The money will be used to pay down intracompany loans under Yorkshire Water’s complicated structure, which includes a holding company called Kelda Group, registered in Jersey, and investors Deutsche Asset Management, the private equity fund Corsair Capital and the Singaporean sovereign wealth fund GIC. The company has also agreed a further £100mn to reduce spills on storm overflows.
This story originally appeared on: Financial Times - Author:Gill Plimmer
