Kelda shareholder sounds out sale of its 23% stake

Investor DWS, has mooted to its fellow shareholders a sale, later this year, of its 23.4% stake in Yorkshire Water parent, Kelda Group, according to a note from analysts at the Royal Bank of Canada.

The bank cited unnamed sources as saying DWS had “made informal contacts with co-shareholders about the sale of the stake in the Yorkshire Water owner, which it is keen to exit following the conclusion of the latest regulatory review.”

The note authors said shareholder Corsair Infrastructure Management was pondering selling its holding alongside DWS in a repeat of a 2018 failed disposal by both shareholders of a total stake topping 50%. According to the note, Corsair is likely to decide in July on whether to go ahead with a sell off.

Royal Bank of Canada said the UK water sector was “proving an attractive proposition given the regulatory certainty until 2025."