Kuwait fund makes move for Severn Trent
UK water firm confirms takeover bid from investor group
UK water firm Severn Trent has confirmed reports that it is the subject of a takeover approach from a consortium of bidders that includes Kuwait Investment Office, Borealis Infrastructure Management and Universities Superannuation Scheme Limited. The firm moved to address an earlier report from Bloomberg that suggested a bid was being considered for the firm, valued at around US $7.6 billion.
Shares in the firm gained 19% in London on the news.
A statement from Severn Trent emphasised that the approach was “at a very early stage” and that “no proposal has been made and there can be no certainty that an offer will made or as to the terms of any such offer, should one be forthcoming”.
The consortium is now required to either announce a firm intention to make an offer, or to decline to make an offer, by June 11 of this year.