Private equity investor KKR & Co. (NYSE: KKR) has become the latest company to make a bid on the struggling Thames Water, despite it receiving high court approval for a £3 billion (A$5.95 billion) lifeline loan this week.
The water supplier serves about a quarter of the UK's population, serving approximately 16 million customers in London and the Thames River valley, employs 8,000 people and was first privatised by the Thatcher government back in 1989.
Its grim financial situation first came to light around 18 months ago, and since then the British government has been on standby to put Thames into special administration, with the company now being warned cash will run out by 24 March.
An announcement from the company last week confirmed they had received buyout bids that they were studying, with the latest coming from KKR & Co. who are offering about £4 billion for a majority stake.
This comes at the same time as a high court ruling which granted the utility company a lifeline loan of £3 billion and a go-ahead for Thames Water creditors to challenge the Court of Appeal over the approval of plans to restructure the company.
The ruling was made by Justice Thomas Leech, saying “the press and public interest in this case makes it important".