(Reuters) -France’s Suez Group would help manage struggling British utilities firm Thames Water’s operations as part of a 5 billion pound ($6.37 billion) bid tendered by investor Covalis Capital for full ownership, the Financial Times reported on Thursday.
Thames Water had asked potential investors to put forward indicative bids by the end of Thursday as the UK’s biggest water company looks to secure a multi-billion-pound cash injection to avoid nationalisation.
Covalis plans to sell billions of pounds of the utility’s assets and publicly list the remains, with the UK government holding a “golden share” that gives it a seat on the board and other rights, FT added, citing people familiar with the bid.
London-based Covalis would provide about 1 billion pounds upfront on agreement of the deal and raise another 4 billion pounds from asset sales, refinancing and the listing, which is expected in two to three years’ time, according to the report.
Suez, which has contracts to run water assets in France, would act as the operating partner and not own any shares in Thames Water under the agreement it has signed with Covalis, FT said, citing people close to the negotiations.
Thames Water declined to comment and Suez Group did not immediately respond to Reuters’ request for comment.
($1 = 0.7851 pounds)
(Reporting by Nishara K.P in Bengaluru; Editing by Shreya Biswas)
