3i Infrastructure sells off its shareholding in Anglian Water

Investment firm, 3i Infrastructure, has sold its 15% stake in Anglian Water parent, Anglian Water Group (AWG), to a consortium including local government pension funds for about £395m. The stake comprises 10.3% held by 3i Osprey with the rest held on behalf of other investors.

The sale will contribute to a “significant cash balance by the end of the first quarter of 2018,” for 3i Infrastructure said its chairman, Richard Laing, He said AWG had “proved a good investment over the past ten years.” He went on to say the 3i board will consider “the potential for returning surplus cash to shareholders.”

Managing partner and head of infrastructure, at 3i Group, Phil White, said: “We have developed a good pipeline of potential opportunities for 3i Infrastructure that are consistent with the Company’s return objectives, and we expect to progress several of these over the coming months.”

The sale to the consortium of fund manager, Dalmore Capital, and joint venture between five local government pension funds, GLIL Infrastructure, is conditional on third party consents with completion anticipated early in 2018. The stake was valued on 30 September 2017 at £288 million.