(Bloomberg) -- Carlyle Group has been approached about a potential investment in Thames Water, Sky News reported on Saturday.
The US investment firm is among the prospective equity investors contacted by Thames Water’s financial adviser Rothschild & Co, Sky News said, citing unidentified people close to the process.
Other potential investors that have been sounded out include Brookfield and Global Infrastructure Partners, the Sky News report said.
Thames is seeking a new equity injection from an infrastructure fund to provide some or all of the £3.3 billion ($4.4 billion) it needs to fix chronic leaks, sewage spills, cope with a growing population and climate change. The utility has already started pre-marketing for the equity raising.
The company, which needs fresh funds to avoid a collapse, has said it has liquidity to last through to the end of May next year. It’s been in talks with its creditors about releasing some cash reserves and to explore other options to boost its liquidity.
In parallel, the creditor group holding about £10 billion of the firm’s debt is drawing up their own rescue package that could involve injecting equity, but needs more time to work out a restructuring plan, Bloomberg reported earlier this month. The group is advised by Jefferies Financial Group Inc. and Akin Gump Strauss Hauer & Feld.
On Wednesday, S&P Global Ratings and Moody’s Ratings further downgraded Thames Water amid concern the company faces a liquidity crunch that may come sooner than expected.
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