LongRiver Partners Revised Takeover of Severn Trent PLC Rejected
How bad do mega public investors want to own a U.K. water utility? According to the Sovereign Wealth Fund Institute’s sovereign wealth fund transaction database (SWFTD), direct investments in European utilities have experienced steady growth over the past few years. Inflation-linked cash flows are in high demand by foreign institutional investors.
A consortium dubbed LongRiver Partners which includes Borealis Infrastructure, Kuwait Investment Office and U.K.-based Universities Superannuation Scheme put in another bid to buy the second-largest publicly traded U.K. water company Severn Trent PLC. Severn Trent rejected the revised takeover offer. The water company supplies water and other services to more than 4.2 million households in the UK, mostly in the Midlands region.
In a statement by Andrew Duff, Chairman of the company, “The board unanimously believes that LongRiver’s revised conditional proposal at 2,079.49 pence per share, excluding the final dividend which we have already announced, fails to value the attractions to Severn Trent’s shareholders of Severn Trent’s increasingly rare combination of yield, inflation-linked business model and potential.”
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