Thames Water has confirmed an improved rescue bid from creditors, with a consortium called London & Valley Water (L&VW) proposing to inject £3.35 billion in new equity and up to £6.55 billion in new debt. The offer, first reported over the weekend, marks an increase from a previous bid in October last year.
The consortium includes institutional investors such as Aberdeen, Elliott Management and Silverpoint Capital. Thames Water said the proposal remains under review by the company, regulator Ofwat and other authorities, and there is no certainty it will be accepted or finalised in its current form.
The water supplier, which serves around 16 million customers, is burdened by nearly £20 billion of debt and is seeking to avoid temporary nationalisation. A previous rescue deal with US private equity firm KKR collapsed in May, and administrators have been lined up to step in if needed.
The revised bid includes commitments from creditors not to sell a significant portion of their equity investment through to 2030, and prevents Thames Water from paying dividends to shareholders before April 2035, unless it becomes a listed company. Creditors would also accept up to 30% of the company's debt being written off.
An Ofwat spokesperson said the regulator is reviewing the plans to assess whether they deliver operational improvements and strengthen financial resilience. A spokesman for L&VW described the offer as the fastest and most reliable route to stabilising Thames Water without government funding or cost to taxpayers.
