Yorkshire shareholders reported to be set to confirm sell-out plans

Two of Yorkshire Water’s chief shareholders are looking to sell their combined 54% share in the water company’s parent, Jersey-based Kelda Group, according to reports in national newspapers.

The combined stake held by Deutsche Asset Management and the private equity fund Corsair Capital is understood to be worth some £4bn.

The move was semaphored in the summer in a report by The Times. Commentators have inevitably linked the move with an anticipated tough price control from 2019 – with Ofgem set to unveil its methodology next week – and Labour’s declared intention to re nationalise the sector were it to win a future General Election.

Earlier this year the Macquarie sold its final stake in Thames Water and venture capital firm 3i is understood to be selling its 15% stake in Anglian Water. South Staffordshire Water’s owner is understood to be considering a sale of the firm.

Corsair Capital holds a 30.32% stake in Kelda while Deutsche Asset Management manages Pan-European Infrastructure Fund's 23.37% stake. The remaining shareholders are: Singapore GIC Special Investments with 33.56%; and SAS Trustee Corporation has a 12.75% stake. earlier this year they bought out the Prudential’s infrastructure arm, Infracapital which held a 10% stake.