British water utility Kelda Group said today it had agreed to be bought by a consortium of investment firms for around £3 billion.
Kelda, which owns Yorkshire Water, said its shareholders would receive 1,090 pence a share from the consortium, which comprises Citigroup Alternative Investments, GIC Special Investments, Infracapital Partners and HSBC.
It also announced an interim dividend of 10.65 pence a share for the six months to September 30, which shareholders will be allowed to keep, giving a total figure of 1100.65 pence a share.
Chief Executive Kevin Whiteman told reporters the deal included just over £2 billion of debt, giving Kelda an enterprise value of between £5 billion and £5.5 billion.
He declined to say wether Kelda had received any other approaches besides the successful one, which it announced last Thursday.
Utilities are attractive to financial bidders who value their stable cashflow, which they can use to pay interest on bonds.
They are also viewed as relatively safe assets in an economic downturn so are more isolated than most from the global credit crunch which was sparked by concerns over US subprime mortgages.