Consortium led by Germany's Allianz swoops for Affinity Water
A water company supplying around 1.6 million UK homes and businesses is being sold to a consortium led by German insurer Allianz.
Affinity Water, the largest water-only supply firm in England and Wales, is being bought by a team of investors, which also includes London-listed HICL and fund manager DIF.
The deal signals the latest interest among overseas investors for UK infrastructure, coming after a minority stake in Thames Water was sold to a consortium of Canadian and Kuwaiti investors in March.
Affinity supplies around 900 million litres of water a day on average across parts of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey and some London boroughs, as well as Folkestone and Dover.
The deal sees Morgan Stanley's infrastructure team and M&G Investments-owned Infracapital sell their 90% stake in Affinity, while French water and waste group Veolia will sell its 10% holding.
Both sales are expected to complete this month.
The group stressed it would be business as usual despite the sale.
Simon Cocks, chief executive of Affinity Water, said: "As a business we will continue to operate as normal, focused on achieving our strategic objective to become the leading community focused water company in the UK.
"We look forward to welcoming our new investors to the company."