Severn Trent has confirmed press speculation that it has received a bid approach from a consortium of investors which is rumoured to value the UK utility company around 5.3bn pounds.
In a statement released on Tuesday morning, Severn Trent said it had received an approach with a view to making a proposal from Canadian infrastructure investor Borealis, the Kuwait Investment Office and Universities Superannuation Scheme Limited.
"This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming," the company said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
According to the Financial News magazine, sources said that a potential offer could come between 2,250p and 2,300p a share.
The news comes just a month after the firm revealed that Chief Executive Officer Tony Wray is to step down next year after seven years on the job.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
