Thames Water says KKR pulls out of equity raise process

KKR & Co. (NYSE:KKR) has pulled out of Thames Water's equity raising process, the utility said Tuesday. 

The US alternative asset manager “will not be in a position to proceed, and its preferred partner status has now lapsed,” the company said.

Following KKR’s withdrawal, Thames Water has indicated its intention to advance discussions on the senior creditors’ plan with Ofwat, the water services regulation authority in England and Wales, and other stakeholders.

KKR was set to acquire a £4 billion stake in the troubled water company, which is grappling with nearly £20 billion in debt.

Adrian Montague, chair of Thames Water, said: "Whilst today's news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal."