CKI requests to rejoin Thames Water auction - report

(Sharecast News) - Hong Kong infrastructure investor CK Infrastructure (CKI) has reportedly written to Thames Water to be let back into the bidding process for the struggling water company. According to Sky News, CKI has contacted Thames Water chair Adrian Montague to request access to due diligence information, just days after takeover talks with preferred bidder KKR collapsed.

CKI, which already owns Northumbrian Water and Northern Gas Networks, was in the running for the debt-laden utility group earlier in the year but faced fierce political opposition for its alleged links to the Chinese Community Party.

The letter, from CKI's deputy managing director Andy Hunter, indicated CKI's interest to be readmitted to the auction, with the investment firm able to make a formal bid within just six weeks, Sky News reported.

The developments came on the same day a group of Thames Water creditors proposed injecting billions into the stricken utility in exchange for regulatory leniency.

The creditors, which include Aberdeen, Elliott Management, Silver Point Capital and BlackRock, have submitted their plans to Ofwat. They have pledged to invest £3bn in new equity, raise a further £2bn and overhaul £17bn of Thames Water's debts.

The rescue package would lead to the "largest financial loss suffered by investors on an infrastructure asset in British history", the creditors claimed. However, in return they want the regulator to weaken both performance targets and compliance.