Borealis Infrastructure has announced it will purchase an additional 5.5 per cent stake in Kemble Water Holdings, the parent company for Thames Water.
The deal comes less than two months after Borealis became a major shareholder for Thames, leading a consortium of investors who bought out Australian bank Macquarie’s 26 per cent stake.
The transaction, which will close later this year, will take Borealis’ overall interest in Thames to 23 per cent.
Responding to the announcement a spokesperson from Thames Water told Utility Week the company was “delighted” that Borealis had decided to extend its shareholding, “so soon after taking their initial stake in the company”.
Earlier this week it was announced that Universities Superannuation Scheme (USS) had acquired a minority stake of around 11 per cent in Thames Water.
Other UK infrastructure investments for USS, a pension fund, include Heathrow Airport.
Thames Water said it welcomed this new addition its shareholder make-up as it will support a long-term approach to investment. In the run up to a challenging price review for the water sector, USS head of real assets Gavin Merchant assured: “We are supportive of the goals of Thames Water’s management team and their objectives to deliver the best possible service to its customers.”
Elsewhere in the water industry there is speculation that investor’s controlling more than 50 per cent of Yorkshire Water may sell out of the company.