Kelda starts non-reg divestment with plant sell-off
Published November 30th, 2017
Kelda has raised almost £110m (including transfer of debt) from the sale of four water-treatment plants in Northern Ireland that were owned and operated by its Kelda Water Services subsidiary.
The sale of the plants to Northern Ireland Water is part of the company’s plan to offload all the KWS non-regulated activities, and further announcements are expected by early next year. The other main assets currently held are a 25-year PPP water and waste-water supply contract with the Ministry of Defence, which has a notional value of £1bn, and two aerobic digestion plants in Edinburgh and Cardiff.
Under the terms of the transaction, Northern Ireland Water has paid £28m for the equity in the KWS Alpha subsidiary that operates the treatment plants and assumed around £80m of debt.
The four plants provide almost half the treated water in Northern Ireland, and the deal brings all such supplies back under NI Water's direct control.