"Great step forward": What Yorkshire Water's new Swedish backers mean for its 5.5m customers
Swedish private equity firm EQT is to take a 42 per cent stake in the parent company of Yorkshire Water – with the new investors set to help cover a £600m loan repayment.
EQT has announced plans to take a stake in Jersey-registered Kelda Holdings, the parent firm of Yorkshire Water, in a deal expected to be completed by the end of June.
It is set to contribute an unspecified amount towards a £600m intercompany loan repayment that is due before March 2027 as part of a broader commitment to investing equity in strengthening the company’s balance sheet. EQT is also “fully supportive” of an existing £8.3bn investment plan running to 2030 to improve the Yorkshire Water’s infrastructure and environmental performance.
EQT, which already has more than £10bn invested in UK businesses and whose international portfolio includes French rinking and wastewater management company SAUR and US-based Seven Seas Water Group, has also pledged to bring about “service improvements” for Yorkshire Water’s 5.5 million customers.
Following the completion of the deal, existing shareholders GIC, a leading global investor, and TCorp, the investment and financial management partner of the New South Wales public sector in Australia will hold 42 per cent and 16 per cent of the company respectively.
Nicola Shaw, Chief Executive of Yorkshire Water and Kelda Holdings Limited, said the deal represents “a great step forward for Yorkshire Water”.
She said: “The EQT team will bring additional expertise to our board, and their backing is a strong vote of confidence in our plan to improve performance and the progress we have made so far.
"EQT has a long-term perspective and their team is committed to supporting the delivery of our £8.3bn investment programme. Their support, together with GIC and TCorp, will enable us to continue to execute our strategy, maintain focus on operational performance, and deliver the investment needed to improve outcomes for customers and the environment across Yorkshire.”
Kunal Koya, Partner at EQT Infrastructure, added: “Our strong track record as a long-term active owner of large infrastructure assets makes EQT a natural partner for Yorkshire Water.
"We believe that as a responsible private capital manager, EQT can play an important role in modernizing the UK’s water infrastructure, and the company’s multi-year investment plan reflects that objective.
"Together with Yorkshire Water’s existing investors, we will support the sector’s reform agenda and deliver service improvements for customers across the region and transparency for all stakeholders.”
Vanda Murray, chair of Yorkshire Water & Kelda Holdings, added: “We are delighted that EQT has decided to invest in Yorkshire Water. That decision is a strong endorsement of the strategy we are executing, the business plan we have in place, and the quality and experience of our management team.
"We are making encouraging progress on ‘Doing Right by Yorkshire’ as we continue to strengthen service, resilience and outcomes for customers and the environment, and EQT’s long-term, responsible approach to ownership is well aligned with our priorities. We look forward to working together as we build on that momentum and continue to deliver against our plans.”
Lord Stockwood, Minister for Investment, Department for Business and Trade and HM Treasury, said: "EQT's decision to invest in the UK’s regulated water sector underlines the strength of our investment environment and the trust international partners place in the UK economy.
"It demonstrates that the UK remains one of the world’s most attractive destinations for long‑term, sustainable investment."