Challenger Financial has joined forces with a consortium to buy United Kingdom water and sewerage company Southern Water for $9.57 billion.
The consortium includes banking titan JPMorgan, which will acquire 32 per cent of Southern Water.
Challenger Financial will gain 27 per cent and Swiss bank UBS will buy 18 per cent. The acquisition will make up 36 per cent of Challenger Infrastructure Fund's $2 billion portfolio.
Challenger said Southern Water was the quickest growing among the 10 water and sewerage treatment companies in the UK and that it was an attractive, low-risk and high-yielding infrastructure asset.
Southern Water is forecast to grow 31 per cent in regulatory capital value over 2005 to 2010, with 5.6 per cent tariff price growth over the same period.
The company provides water and sewerage treatment works to more than 2.3 million people and gives wastewater services to around 4.3 million.
