Water firm backstakeoverproposal
YORKSHIRE Water owner Kelda has backed a takeover proposal valuing the business at just over £3bn.
The Kelda board’s recommendation comes after the company revealed last week that it had been approached by an infrastructure consortium involving leading financial institutions, including Citigroup and HSBC.
Kelda chief executive Kevin Whiteman said the offer was a good one for customers, the company’s 3,000 staff and shareholders.
He added: “The members of the consortium are highly credible institutions and, as investors, are taking a long term perspective on our business with a view to continued delivery of excellent service levels to customers, and opportunities for our employees.”
Yorkshire Water is Kelda’s principal UK subsidiary, providing water and waste water services to more than 4.7 million people and 140,000 businesses.
Kelda Group, previously named Yorkshire Water, was originally formed following water company privatisations in 1989.
Kelda also posted half-year results showing a 5.6% increase in revenues to £434.9m.
Profits from continuing operations rose 8.7% to £184.m.
The company said the improvement reflected the underlying strength of its core business of Yorkshire Water and steady organic growth in Kelda’s services arm.
Energy costs, which increased dramatically last year, fell slightly in the half-year while regulated prices were allowed to increase 7.9%.
