Thames Water investors offer ‘golden share’ in bid to head off nationalisation
Summary
A group of investors who hold most of Thames Water’s debt have offered the UK government a "golden share" that would give it more control over the water company. This offer aims to prevent the company from being nationalised by giving the government veto power over major decisions while the investors work on a revised rescue plan.Key Facts
- Thames Water is the largest water company in Britain, serving 16 million customers.
- London & Valley Water (L&VW) is a consortium of about 100 investors holding £17 billion of Thames Water’s £21 billion debt.
- L&VW offered the government a "golden share," allowing veto power on important decisions and hostile takeovers.
- Their £10 billion rescue plan includes no investor dividends for 10 years or until Thames Water is publicly listed again.
- The plan also promises to expand social tariffs, helping reduce bills for struggling households.
- The government, led by Prime Minister Andy Burnham, has expressed interest in greater public control and possibly nationalising Thames Water.
- Burnham may place Thames Water under a special administration regime, a type of temporary public ownership.
- The rescue offer came after concerns from the former environment secretary about the deal’s terms delayed prior rescue attempts.
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