British water company Severn Trent Plc has rejected an approach by a consortium consisting of Borealis Infrastructure Management, the infrastructure investment arm of Ontario Municipal Employees Retirement System, Kuwait Investment Office and U.K.-based Universities Superannuation Scheme. After meeting with the investor group, the company’s board said the acquisition offer, the value of which has been reported at £5.3 billion (US$8.1 billion), failed “to recognise the existing and potential value of Severn Trent.”
Further to our announcement of 14 May regarding an approach by a consortium comprising Borealis Infrastructure Management Inc., the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, the “Consortium”), representatives of Severn Trent met representatives of the Consortium today for the first time.
At that meeting, a conditional proposal was tabled by the Consortium (the “Proposal”) at only a modest premium to the share price before the announcement of 14 May. The Board of Severn Trent has reviewed the Proposal with its advisers and concluded that it completely fails to recognise the existing and potential value of Severn Trent. Accordingly the Board has informed the Consortium that it has rejected the Proposal.
Andrew Grant +44 (0) 20 7353 4200
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