Severn Trent Plc, the water company from Britain, is said to be the target of a GBP5.3 billion takeover bid from a consortium led by Canadian infrastructure investor Borealis with Kuwait Investment Authority. The said takeover bid was reported by the Financial News.
The adviser of the consortium is Deutsche Bank and had said that Borealis, the infrastructure arm of OMERS or the Ontario Municipal Employees Retirement System and the Kuwaiti sovereign fund would be offering between GBP22.5 and GBP23 per share for the British utility firm.
According to three sources who spoke on condition of anonymity to Financial News, discussions are still exploratory in nature and it can still fall through.
The consistent returns from British water firms have made them very attractive investment options for sovereign wealth fund investors as well as foreign pension fund investors.
The company, Severn Trent, provides water and sewage services in both the United Kingdom and abroad. When sought for comment, it said it was a mere rumor and declined to make any further comment.
Join the Conversation