United Utilities has agreed to a £88m cash deal to sell its 35.3 per cent stake in the largest water utility company in Estonia, Tallin Water.
The utilities company will sell the stake to a consortium led by the Estonian city of Tallinn, which is an existing partner of United Utilities, alongside company Utilitas.
Company representative Simon Gardiner said: “United Utilities is grateful for the city of Tallinn’s trust and opportunity to be a partner in delivering essential water services for more than 20 years.”
The transaction will leave the city of Tallinn as the majority shareholder with a 52.4 per cent stake in Tallin Water, also known as AS Tallinna Vesi, after United Utilities held its stake for two decades.
Meanwhile, Utilitas will have a share of 17.6 per cent.
The deal is expected to be finalised in April, subject to merger control consent from the Competition Authority in Estonia.