Water utility company Anglian Water receives £500 million financial enhancement following its involvement in criminal investigations.
Anglian Water Secures £500m Investment Amidst Criminal Investigations
In a notable development, water utility company Anglian Water has received a substantial £500m investment from its shareholders, just days after the revelation of multiple criminal investigations against the firm. The company, which primarily operates in the East of England, is owned by the Osprey Consortium, a partnership comprising Canada Pension Plan Investment Board, Colonial First State, and Industry Funds Management.
According to Anglian Water, its shareholders will inject £500m into the group, distributed proportionally to their current ownership stake. This announcement comes following the government's confirmation earlier this week that Anglian Water and Thames Water are among more than 50 water companies under investigation as part of a crackdown on sewage dumping.
Since July 2024, a record-breaking 81 criminal investigations have been launched into England's water companies. Anglian Water and Thames Water face the majority of these investigations, with Thames Water subject to 31 probes, making it the most investigated company. Anglian Water faces 21 investigations, the second-highest for any single company.
The Environment Agency has reported widespread law-breaking, with Thames Water under the spotlight. London-listed Severn Trent and United Utilities together face the third-highest number of investigations, with seven each.
In a statement issued to the London Stock Exchange, Anglian Water expressed satisfaction over the shareholders' commitment to invest £500m. The investment, the company stated, reflects the shareholders' confidence in Anglian Water's business and the sector's attractiveness to investors, given the government's recent commitment to address industry reforms.
Anglian Water plans to utilize £300m of the investment to repay a £240m bond maturing in March 2026 and bank revolving credit facilities. The remaining £200m will be repaid in June 2026 to repay bank loans matured in that month.
Last June, City AM reported a revenue increase for Anglian Water, reaching £1.6bn, thanks in part to price rises. The company's pre-tax profit, however, decreased from £358.5m to £133.2m in the same period. Despite this, Anglian Water handed over an £88.6m dividend to its shareholders, marking an increase from the previous year.
The investment, a significant £500m from the Osprey Consortium, reinforces their confidence in Anglian Water's business within the sector, despite ongoing criminal investigations in the finance industry regarding England's water companies. With this investment, Anglian Water plans to fortify its business operations by repaying maturing bonds and bank loans, demonstrating the attraction of the industry to investors amidst industry reforms.
