Deutsche Asset Management to launch sale of Kelda stake in September, say sources: Reuters

Deutsche Asset Management (DAM) plans to launch the sale of its stake in British water company Kelda Group as soon as next month with an estimated valuation of close to 1 billion pounds ($1.3 billion), sources close to the matter told Reuters.

The German asset manager, which invested in Kelda in 2008, and U.S. private equity firm Corsair Capital were reported in July to be interested in selling their holdings.

Deutsche Bank has been mandated for the sale and is testing the market’s appetite for the 23.4 percent stake in Kelda, the sources said, though one said a deal could be delayed because UK water industry watchdog Ofwat is due in December to publish the methodology for its next five-year price review.

DAM, Deutsche Bank and Corsair Capital declined to comment.

Kelda owns British utility Yorkshire Water, which provides water and sewerage services to five million people and 130,000 businesses.

One of the sources said that Corsair was also considering selling its 30.3 percent stake.

Kelda Group was taken off the London Stock Exchange in 2008 after it agreed to be bought by a consortium of investors for about 3 billion pounds.