ADIA buys 10% of Thames Water from Macquarie

A subsidiary of the Abu Dhabi Investment Authority is now the owner of a minority stake in the UK’s largest water company. The sellers were two Macquarie funds and a third-party investor.

Macquarie Infrastructure and Real Assets and a third-party investor sold a 9.9 percent stake in Thames Water, the UK’s largest water company, to a subsidiary of the Abu Dhabi Investment Authority (ADIA) for an undisclosed amount.

The stake was divested by the Macquarie European Infrastructure Fund (MEIF 1), an unnamed Macquarie fund, and an unidentified third-party fund. Despite the sale, Macquarie will continue to be Thames Water’s largest shareholder, the Australian fund manager said.

Macquarie led the Kemble Water Holdings consortium that acquired Thames Water in December 2006 from German utility RWE. At the time of acquisition, Kemble Water included the likes of AMP Capital, Santander Private Equity, Dutch pension ABP, Alberta Investment Management and Queensland Investment Corporation, to name just a few of the consortium's members.

In May, AMP Capital spent £27 million (€32 million; $42 million) increasing its holding in Thames Water and now holds a £44 million position in the company.