Infracapital and Morgan Stanley Infrastructure have today announced the sale of Affinity Water Limited to a consortium comprising Allianz Capital Partners on behalf of the Allianz Group, HICL Infrastructure Company Ltd and DIF.
Infracapital and MSI have signed an agreement to sell their 100% interest in Affinity Water Acquisitions (Investments) Ltd, which indirectly owns 90% of Affinity Water. As part of the transaction, the buyers acquire Veolia Water UK Ltd’s 10% stake in Affinity Water.
The consortium members have signed an agreement to acquire a 100% equity interest in Affinity Water Acquisitions (Investments) Ltd, indirect owner of 90% of Affinity Water for £687 million, together with rights to acquire Veolia Water UK Ltd's 10% indirect stake.
Commenting on the deal, Christian Fingerle, Chief Investment Officer, at Allianz Capital Partners said:
"The UK water sector offers a well-established and transparent regulatory framework that provides Allianz good visibility and a fair return on its investment."
“The investment in Affinity Water is another important step in our ambition to grow our portfolio of high-quality core infrastructure assets and it reaffirms our comfort with the UK as a stable jurisdiction in which to invest capital. This investment will deliver inflation-linked, stable and predictable cash-flows which are ideal for matching long-term payment obligations to the customers in Allianz's core business of insurance."
Both transactions are expected to complete simultaneously in May 2017.
Affinity Water will continue to operate as normal and there is no expectation that the sale will result in any changes at an operational level.
Simon Cocks, Affinity Water CEO commented:
“As a business we will continue to operate as normal, focused on achieving our strategic objective to become the leading community focused water company in the UK.”
“We look forward to welcoming our new investors to the company and continuing to deliver our enhanced business plan for our customers.”
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