Banks seeks Hyder

By THIS IS MONEY
Updated:

 

Hyder, the Welsh water and utilities supplier, has confirmed it is in takeover talks that could lead to it being bought for more than £410m.

The troubled group issued a statement to the Stock Exchange following reports that it was in talks with Japanese investment bank Nomura International.

While declining to identify the suitor, Hyder said the talks concerned a cash offer for the company 'at a small premium' to Thursday's closing share price of 265p a share.

The company said: 'This is one of a number of options being considered by Hyder as part of the strategic review which the board has already announced.'

Hyder is the largest private sector employer in Wales and its activities include the electricity and gas supplying business Swalec and Welsh Water.

Last year the company warned it may be forced to break up if regulators insisted on the implementation a large capital investment programme and price cuts to consumers.

Its troubles culminated in a statement in March, that it was carrying out a wide-ranging review of its options including a possible sale of the company.

A takeover of Hyder by Nomura's Principal Finance Group, led by one of the UK's highest paid City financiers Guy Hands, could be politically sensitive.

It is understood that several senior political figures would be opposed to one of Wales' biggest companies being bought by a financial institution.

Hyder, which serves almost a million customers, is believed to have debts approaching £2bn.

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