REGULATORY · COMPETITIVE · UK
EQT takes 42% stake in Kelda Holdings
Change
EQT will take a 42% stake in Kelda Holdings, the Jersey-registered parent company of Yorkshire Water, and provide fresh funding that includes support to cover a £600m loan.
Why it matters
EQT will acquire a 42% stake in Kelda Holdings. Post-transaction ownership will be EQT 42%, GIC 42% and TCorp 16%. The funding package includes provision to help cover a £600m loan held by Kelda Holdings. Kelda Holdings is the Jersey-registered parent company of Yorkshire Water, which serves about 5.7 million customers across Yorkshire and parts of the East Midlands and Lincolnshire.
Implications
- • Capital becomes available to address or refinance the £600m loan held by Kelda Holdings.
- • Decision-making and shareholder voting will reflect a 42% / 42% / 16% ownership split, concentrating influence in two equal largest shareholders.
- • Creditor negotiations and servicing schedules for the £600m loan will operate under the new ownership and funding arrangements.
Who is affected
- • Kelda Holdings shareholders
- • Yorkshire Water management and board
- • Creditors of Kelda Holdings (holders of the £600m loan)
- • Institutional investors and private equity stakeholders
Source
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