UU agrees to sell its principal UK & European Non-Regulated water interests

14 June 2010

United Utilities today announces that it has agreed to sell its principal non-regulated water interests* in the United Kingdom and Europe to Veolia Water UK PLC.  The transaction value is £174.2 million, comprising £108.6 million in cash on completion and £65.6 million in net debt assumed by the purchaser.  A further £10 million in cash is payable on a deferred basis, subject to certain contingencies.

Completion of the transaction is expected in the second half of 2010 and is subject to a number of consents and regulatory approvals.  United Utilities expects to retain the proceeds within the group.

United Utilities contacts:

Gaynor Kenyon, Communications Director +44 (0)7753 622282
Darren Jameson, Head of Investor Relations +44 (0)1925 237033
 
James Bradley / Tom Murray, Tulchan Communications +44 (0) 20 7353 4200

Notes

*United Utilities' principal non-regulated water interests include:

•  its 57.8% holding in Sofiyska Voda AD in Bulgaria;
• its 26.5% holding in AS Tallinna Vesi in Estonia;
• its 33.2% holding in Aqua Spolka Akcyjna in Poland;
• its stake in the 2010-15 capital management contract with Southern Water;
• its stake in the capital delivery contract with Southern Water to manage the design and build of a new wastewater treatment works in the Brighton and Hove area;
• its UK industrial solutions business; and
• three Scottish private finance initiatives (33.33% of Catchment Moray Holdings Limited, 33.33% of Catchment Tay Holdings Limited and 50.0% of Catchment Highland Holdings Limited) and associated operations contracts.