Transactions - JULY 25, 2017

USS acquires minority stake in Thames Water Utilities

by Released

Universities Superannuation Scheme Limited, the sole corporate trustee of one of the United Kingdom’s largest pension funds, has agreed to acquire a combined 10.94 percent stake in Kemble Water Holdings Limited, the ultimate holding company of Thames Water Utilities Limited, from investors QSuper, Alberta Investment Management Corporation and OPTrust.

Following completion, USS will become the third-largest shareholder in the company.

Thames Water is the United Kingdom’s largest regulated water utility company, providing water and wastewater services to over 15 million customers per day across London and the wider Thames Valley area. The company operates over 109,000 kilometers of sewers and 31,500 kilometers of water mains, employing over 5,000 across the United Kingdom.

USS is an experienced investor in regulated infrastructure assets, with existing investments in both Heathrow Airport Holdings Limited and NATS in the United Kingdom as well as other regulated assets around the world.

“USS is a responsible long-term investor and steward for the assets we own, and we look forward to developing a long-term relationship with the management team and continuing to strengthen our relationship with Ofwat and other stakeholders,” said Michael Powell, head of private markets group at USS Investment Management.

The transaction is expected to close later in the year.

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