Home / Business and Economy / EQT Invests Millions in Yorkshire Water Amid Sewage Fines
EQT Invests Millions in Yorkshire Water Amid Sewage Fines
9 Mar
Summary
- EQT takes a 42% stake in Yorkshire Water's parent company.
- Investment includes helping cover a £600m loan repayment.
- Yorkshire Water faces scrutiny over sewage spills and executive pay.
Swedish private equity firm EQT is set to acquire a 42% stake in Kelda Holdings, the parent company of Yorkshire Water. This move will make EQT a joint owner alongside existing shareholder GIC, with TCorp holding a 16% stake. EQT's investment will contribute to a £600m inter-company loan repayment due before March 2027.
The investment arrives as Yorkshire Water faces mounting criticism regarding its environmental record and executive compensation. The company was recently fined £700,000 for repeated sewage discharges into a local stream, which harmed aquatic life. Furthermore, the chief executive, Nicola Shaw, received over £1.3m in previously undisclosed extra pay, leading to government action to close loopholes that allowed such bonuses.
Shaw expressed enthusiasm for the investment, highlighting EQT's expertise and long-term perspective. She stated EQT's backing is a strong endorsement of their plan to enhance performance and support the £8.3bn investment program. EQT Infrastructure partner Kunal Koya emphasized their role as a responsible manager committed to modernizing the water sector.
