Hong Kong group in NWG takeover bid

摘要

Hong kong group Cheung Kong Infrastructure Holdings (CKI) has made a £2.4B takeover proposal for Northumbrian Water Group (NWG), which includes Northumbrian Water as well as Essex & Suffolk Water. CKI made a non-binding proposal at 465p in cash per ordinary share for NWG, which agreed to grant CKI a limited period to undertake confirmatory due diligence. CKI already owns British infrastructure assets including interests in Northern Gas Networks, Seabank power station in Bristol, Cambridge Water, and a 4.75% stake in Southern Water. News of the proposal came as NWG announced that operating costs for the 12 months to 31 March 31, 2012 are forecast to increase by around 3%, reflecting inflationary pressures and new commitments resulting from the adoption of private drains and sewers and the Carbon Reduction Commitment, partially offset by efficiencies.