EQT buys 42% of Yorkshire Water owner at £9.4B — below asset value
What's the deal? Private equity group EQT has acquired a 42% stake in Kelda Holdings, the parent company of Yorkshire WaterDealroom has a profile for this one. Try Dealroom →, buying the shares from Deutsche BankDealroom has a profile for this one. Try Dealroom → at "a steep discount," according to the Financial Times. The FT reported the purchase valued Kelda at £9.4 billion — 90% of the company's regulatory capital value — citing "three people familiar with the matter."
Why now? Yorkshire Water announced in February 2026 that two of its four ultimate parent shareholders were exiting, with EQT stepping in for a 42% stake. The transaction completed after the year end, bringing EQT Active Core Infrastructure into the Kelda group from June 2026.
What's the endgame? EQT, alongside existing shareholders GIC and TCorp, has committed to injecting a further £600 million into the group before the end of March 2027. That funding is tied to an undertaking to water regulator Ofwat to repay an intercompany loan: Kelda Eurobond Co is due to make a final payment of £437.2 million, plus £141 million in accrued interest as of March 31, 2026.
The equity injection is split by ownership: EQT (42%) will invest £258.3 million, GIC (42%) another £258.3 million, and TCorp (16%) £98.4 million. Yorkshire Water's annual report says shareholders have signed a commitment letter and hold investment committee approval.
Who's involved? EQTDealroom has a profile for this one. Try Dealroom → is a global investor with Nordic roots and 25 offices worldwide. GIC is Singapore's sovereign wealth fund, established in 1981. TCorp is the sovereign investment manager for the Australian state of New South Wales.
Kunal Koya, head of Active Core Infrastructure Europe at EQT, has joined the Yorkshire Water board as investor director following the change in ownership.
What did EQT know going in? The annual report says EQT acquired its stake with "full understanding of the Ofwat undertaking and funding requirements." It adds that EQT's public announcement referenced a commitment "to invest further equity into the group, to subsequently strengthen the company's balance sheet, through repayment of the intercompany loan."
The signal: The report notes the group "now has a committed shareholder group with no closed end funds" — a structure suited to long-term infrastructure ownership. A discounted entry price, below regulated asset value, underlines the pressure on UK water assets as investors weigh regulatory obligations against balance sheet demands.
Read more: Financial Times · Water Briefing
