The largest shareholder of Thames Water cut the value of its stake by almost 30% last year, another sign of the pressure that’s built up on the UK utility.
(Bloomberg) — The largest shareholder of Thames Water cut the value of its stake by almost 30% last year, another sign of the pressure that’s built up on the UK utility.
Omers Farmoor Singapore Pte, an investment vehicle of the Ontario Municipal Employees Retirement System, reduced the value of its holding in Thames parent company Kemble Water to about £700 million ($917 million) at the end of 2022, down roughly £300 million, according to a corporate filing for the Singaporean entity.
Thames Water, the UK’s largest water and wastewater company, has been engulfed in a crisis as it’s had to borrow more to fund investments in its ailing infrastructure, while soaring inflation in the UK has driven up the cost of servicing its £8 billion of index-linked debt.
The company — which serves about a quarter of the UK population — said last week that it is confident of raising further funds after investors agreed to a £750 million equity injection. UK regulator Ofwat said that there are still “significant issues” to deal with.
The Ontario Municipal Employees Retirement System declined to comment to the FT, which first reported the filings. The Canadian pension fund owns 32% of the utility through various entities, according to Thames Water’s website.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.