Thames Water has reached out to KKR (KKR.N) and Castle Water for additional information regarding their bids for stakes in the embattled utility company, Bloomberg News reported last week, citing sources familiar with the discussions.
The UK's largest water provider, burdened with £18 billion ($22.8 billion) in debt, has received non-binding offers of £4 billion each from U.S. investment firm KKR and UK-based water company Castle.
Meanwhile, an offer from London-based asset manager Covalis Capital, which is also a junior creditor of Thames Water, appears to be less favored by the company, the report noted.
In collaboration with French waste management firm Suez Group, Covalis has proposed a £1 billion investment in Thames Water. Their plan includes selling certain assets before taking the remaining part of the company public while granting the UK government a "golden share."
Thames Water, KKR, and Covalis did not immediately respond to requests for comment, while Castle declined to comment.
A court-approved £3 billion debt package for Thames Water took effect mid-February, providing financial relief and preventing the collapse of the UK's largest water utility.
