Kelda receives US$6.2bn offer

Kelda receives £3bn (US$6.2bn) bid from a consortium comprising HSBC and Citigroup.

The water utility said the bidding consortium is made up of Citigroup Alternative Invewtments, HSBC, Infracapital Partners and GIC Special Investments. The latter is the Singapore government’s private equity arm, which bought into the buy-out of British Airports Authorty, led by Spanish construction group Ferrovial.

Kelda, which owns Yorkshire Water said there was no guarantee a firm offer would be made. The consortium’s £11 per share offer represents a 14.75% premium to the price just before the offer was made public.

Five-year credit default swaps on Kelda’s bonds reacted to the news by surging 45 basis points to around 80-90, according to market sources.