UK electricity and water supplier United Utilities has revealed that it is to divest its 22.63% stake in UK telecommunications group Thus, as part of the company's recently announced strategy of focusing on its core business activities.
The shares will be sold via an accelerated book build and United Utilities said that it has appointed Citi and HSBC as its placing agents, to conduct a share placing to institutional investors of its total stake of 41,427,986 shares in Thus.
The Times Online has reported that these shares are worth approximately GBP75 million.
According to United Utilities, the books for this placing will open with immediate effect and the timing of the closing of the books will be determined by the placing agents.
In a press release regarding the divestiture, United Utilities said that it has identified its stake in Thus as non-core to the group, and that the move is consistent with its strategy of focusing on its core skills of managing water, waste water, electricity and gas networks.
Earlier in June 2007, the UK utility announced plans to divest its electricity distribution assets in northwest England for the same reasons.