Thames Water has disclosed that it has received six takeover approaches from potential buyers.
The embattled utility, which has been teetering on the brink of collapse for months, said the proposals came in response to a fundraising process launched in 2024. The company is now conducting a detailed assessment of each offer.
The UK’s largest utility, struggling to stay afloat under mounting debt and hefty regulatory fines, announced yesterday—after securing court approval for an emergency £3 billion loan—that it is now assessing each takeover proposal.
Thames Water stated that many of the proposals involve losses for its bondholders. The proposals involve a range of potential valuations, structures and outcomes for stakeholders. Of the five proposals that provided financial metrics, all except one (from a Class B Creditor and with significant conditions attached) indicated a material impairment of the Class A debt.
The sixth proposal was for minority equity, intended to partner with investors, and did not set out financial metrics.
In certain of the contemplated proposals, relevant creditors would receive – in exchange for debt impairment – certain rights to share in future growth in the value of the Company, and/or will have the ability to co-invest in the business.
Thames Water revealed that most of the proposals are contingent on securing various forms of “regulatory support and accommodations,” highlighting its financial and operational struggles, including a £19 billion debt burden and deteriorating infrastructure.
The company stated:
“Discussions with relevant parties are ongoing, but there is no certainty that a binding equity proposal will emerge or that any such proposals can be implemented. As a result, certain senior creditors are simultaneously exploring alternative transaction structures to recapitalize the business.”
Thames has not disclosed the identities of its potential buyers. However, in December, infrastructure investor Covalis Capital submitted a £5 billion bid for the company.
