United Utilities sales its stake in Tallinn Water (AS Tallinna Vesi)
United Utilities announced that it has agreed to sell its last remaining non-regulated international business activity. The company’s 35.3 per cent stake in Tallinn Water (AS Tallinna Vesi) is being sold to a consortium led by its existing partner, the City of Tallinn, for a cash consideration of EUR 100.26 million. United Utilities became the Estonian company’s major shareholder when it was privatised in 2001 and a key partner in delivering an investment programme to upgrade the city’s fresh water supplies, sewage pumping stations and sludge treatment facilities.
Simon Gardiner, Company Secretary, and the representative of United Utilities and the Chairman of the Supervisory Board of AS Tallinna Vesi, said “United Utilities is grateful for the City of Tallinn’s trust and opportunity to be a partner in delivering essential water services for more than 20 years. We have always tried to repay this trust by working hard to improve every aspect of this service for our customers in Tallinn and we believe that the company has truly succeeded at this. While United Utilities has played its part, this would not have been possible without the skill and efforts of the dedicated employees of the company. My special thanks go to them and, in particular, to the management board whose guidance and leadership have been exceptional”.
Completion of the transaction is expected by April 2021, subject to the approval of the governing body of the City of Tallinn and merger control consent from the Competition Authority in Estonia. Proceeds of the sale will support United Utilities in taking further steps to improve services for customers and communities in the north west of England, helping to drive a green recovery for the region.
United Utilities was advised on the deal by Ellex team in Estonia which included Partners Sven Papp and Martin Mäesalu and Senior Associate Gerda Liik.