CK Infrastructure Calls for Thames Water Renationalization

Hong Kong investor CK Infrastructure, previously rebuffed in its bid for Thames Water, is now urging the UK to renationalize the struggling utility. They warn that a flawed bidding process has created a plan that threatens the company’s future.

CKI complained to the sector regulator, Ofwat, earlier this month – the Financial Times has seen the complaint – stating that potential bidders for Thames Water, which is burdened with nearly £20bn of debt, were unfairly prevented from making offers.

KKR, the private equity firm initially chosen to take over Thames Water, withdrew in June. This leaves Britain’s largest water company controlled by its creditors,including Elliott Management and Apollo Global Management.

CKI has accused these creditors of prioritizing short-term gains. The creditors have proposed listing Thames Water publicly and reducing its debt by 25 percent in exchange for relaxed fines and targets. CKI views this as a risky move, delivering a strong critique to Ofwat.

The Hong Kong-based firm argues the creditors’ plan is a “high-risk proposition that gives rise to serious concerns.”