Allen & Overy advising Macquarie on its acquisition of a majority stake in Southern Water
12 August 2021
Allen & Overy is advising Macquarie Infrastructure and Real Assets on the acquisition of a majority stake in Southern Water Services Limited (‘Southern Water’) by Macquarie Asset Management (Macquarie). The deal will see Macquarie invest, on behalf of long-term investors, over GBP1 billion in new equity to recapitalise Southern Water and implement a more sustainable financing strategy for the business.
The capital injection will enable Southern Water to invest significantly to upgrade its network with GBP2 billion to be invested over the next four years of the current regulatory period to fix the pipes, pumping stations, and sewers to prevent underperformance and harm being caused to the local environment.
Southern Water provides essential services to 2.6 million water and 4.7 million wastewater customers in the UK across Kent, Sussex, Hampshire, and the Isle of Wight. Meanwhile, Macquarie is one of the largest investors in the UK, having invested and arranged more than GBP50 billion in infrastructure projects since 2005.
- Regulatory advice is being provided by partner Mark Friend, counsel Thomas Masterman and senior associate Christopher Best.
- Environmental advice is being provided by partner Matthew Townsend, senior associate Fee Goossens and trainee Aladdin Benali.
- Litigation advice is being provided by partner Jonathan Hitchin, counsel Sarah Garvey and trainee Harry Newcombe.
- Financing advice is being provided by associate Lucy Williams, and in respect of the listed bonds by partner Tim Conduit and associate Sarty SenGupta. Specialist hedging advice is being provided by partner Parya Badie, counsel Anthony Colegrave and associate Giovanni Chiarli.
- Real Estate advice is being provided by partner Nick Saner and associates Christina Rothnie and Ejiro Otu.
- IP and Data Protection advice is being provided by senior associate George Luther and associate Edward Lucas.
- Pensions advice is being provided by senior associate Ed Jackson, associate Rayann Fearon and trainee Sophie Graham.
- Employment advice is being provided by associate Gilbert Musanhu and trainee Jack Dawson.
- The A&O Belfast team also provided support on the due diligence work streams.