The sale of a 30% stake in Kelda Group jointly owned by Infracapital and Citi Infrastructure would get a windfall of nearly GBP2.3 billion or US$3.6 billion for the two firms. This price can easily be attained, according to banks specializing in utilites, as Kelda Group controls Yorkshire Water.
Infracapital is the infrastructure arm of fund manager M&G Investments based out of the UK. It would be selling off its 13% stake while Citi Infrastructure would be selling 17% of its 37% shareholdings over the company. The amounts were confirmed by individuals familiar with the transaction.
The investment funds have engaged the services of Macquarie to manage the deal.
The parent company of Yorkshire Water is estimated to be worth between GBP6 billion and GBP6.8 billion based on a 15% to 30% premium above the regulated asset base worth GBP5.2 billion in 2012. According to the estimate of bankers following the sale, the 30% stake could be well worth GBP2.3 billion overall.
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