Abu Dhabi fund takes 9.9% stake in Thames Water

ADIA, the world’s biggest sovereign fund, already owns stake in Gatwick Airport
Abu Dhabi fund takes 9.9% stake in Thames Water
Thames Water is the UKs largest utility [picture for illustrative purposes only]
By Claire Ferris-Lay
Tue 13 Dec 2011 04:26 PM

Abu
Dhabi Investment Authority
(ADIA), the emirate’s sovereign wealth fund, has bought
a 9.9 percent stake in Thames Water from a consortium led by Australian bank Macquarie.

The acquisition
was made by Infinity Investments, a wholly-owned subsidiary of ADIA Macquarie said
in a statement on its website on Tuesday. The company declined to reveal the
value of the sale of the stake in Kemble Water, the parent company of Thames
Water.

The UK utility
is the country’s largest water and wastewater services company.

ADIA is one
of the world’s largest wealth funds with estimated assets of $400-$600bn,
ranging from stakes in London’s Gatwick Airport to Hyatt Hotels.

A
spokesperson for the wealth fund declined to comment on the deal.

The
Macquarie-led consortium acquired its stake in Kemble in 2006 from the German
utility group RWE for £8bn ($12.5bn), beating competition from several bidders
including one led by the Qatar Investment Authority.

Thames
Water on Dec 5 announced an underlying profit after tax for the six months
ending September 30 of £117m ($182m). The results were broadly in line with the
same period the previous year.

ADIA in
August restructured its external equities department and named Sheikh Mohammed
bin Khalifa Al Nahyan, son of the President of the United Arab Emirates and
ruler of Abu Dhabi, as the head of its newly-created indexed funds department.

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