Alinta Considers Bid for Thames Water Amid Multiple Suitors

Strategic Insights -

Australian utility group Alinta is reportedly weighing a potential bid for Thames Water, which has been put up for sale by its German parent RWE. Investment banks Goldman Sachs and Deutsche Bank are handling the auction, with first-round bids expected to be submitted this week. Alinta is working with JP Morgan on a potential bid, and may team up with fellow Australian infrastructure group Macquarie. However, Alinta and Macquarie are also reportedly set to compete in a bid for Thames Water, amidst competition from several other consortia.

Key Takeaways:

  • Alinta is considering a bid for Thames Water, working with investment bank JP Morgan on a potential bid.
  • Alinta may team up with fellow Australian infrastructure group Macquarie, but the two are also set to compete in a bid for Thames Water.
  • First-round bids for Thames Water are expected to be submitted this week, with investment banks Goldman Sachs and Deutsche Bank handling the auction.
  • Multiple consortia are competing for Thames Water, including Terra Firma's bidding consortium with Morgan Stanley, Citigroup, Merrill Lynch, and Lehman Brothers, and Singaporean infrastructure investor GIC.
  • Other suitors include the investment bank UBS, teamed with Qatar's state investment authority, and 3i, working with Canadian infrastructure investors Borealis and Caisse de Depot et Placemement du Quebec.
  • Alinta plans to become more like an investment bank, originating deals and selling assets down to its Alinta Infrastructure Holdings Arm.

Statistics:

  • Thames Water has appointed two investment banks, Goldman Sachs and Deutsche Bank, to examine a sale or flotation. (Source: [Thames Water])
  • Alinta plans to submit a bid for Thames Water, but has not commented on specific details. (Source: [Australian Financial Review])
  • First-round bids for Thames Water are expected to be submitted this week, with an August 15 deadline to submit final bids. (Source: [Goldman Sachs])
  • Multiple consortia are competing for Thames Water, including 4-5 major players. (Source: [Sources close to the situation])

Sources:

  • Thames Water
  • Australian Financial Review
  • Goldman Sachs
  • Sources close to the situation