Chinese sovereign wealth fund acquires stake in Britain’s utility Thames Water
20 Jan 2012
China Investment Corporation (CIC), the country's sovereign wealth fund, today made its first investment in Britain by acquiring an 8.68-per cent stake in utility company Thames Water, for an undisclosed sum.
The $410-billion sovereign wealth fund has acquired the stake in Thames Water holding company Kemble Water.
Beijing-based CIC did not give the value of the transaction, but said in a brief statement that it made the acquisition through a wholly-owned subsidiary, which it did not name.
The investment in Thames Water comes after Abu Dhabi Investment Authority, one of the world's largest sovereign wealth funds, had in December 2011 acquired a 9.9-per cent stake from a consortium led by Australian investment bank Macquarie. Even this deal size was not disclosed.
Thames Water, the largest water and sewerage companies in the UK, was sold in 2006 by German utility group RWE to Macquarie-led consortium, for £8 billion in cash, included debt of £3.2 billion.
Thames Water provides sewerage services to 14 million customers and supplies water to 8.8 million in London and the Thames Valley.
Thames Water's closest rival Northumbrian Water was acquired last year by Li Ka Shing, Hong Kong's richest man, for £4.7 billion.
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