British water utility Kelda Group may agree to a £3 billion takeover deal with a consortium of investment firms by as early as next week, according to sources close to deal.
Kelda said today that it had received a takeover approach from the group of infrastructure investment firms, sending its shares almost 15% higher.
The price announced would be about a 25% premium to the company's asset value as set by the UK water regulator, the sources said, adding this is similar to the price paid for Southern Water recently by funds led by JP Morgan.
Kelda, which owns Yorkshire Water, said the consortium comprised Citigroup Alternative Investments, GIC Special Investments, Infracapital Partners and HSBC. It indicated it would offer 1,100.65 pence per Kelda ordinary share, comprising cash and an interim dividend.
Kelda said there was no certainty an offer will be made.
