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view from a passerby final night time. “I’ve been a customer of Thames Water for 30 years. It has got worse every single year. It is a shambles.”
Since our commentator was sporting pink trousers and a inexperienced shirt, I don’t assume he was from Just Stop Oil — although in addition they managed to get tickets to Lord’s.
That such sentiments about Thames Water are so widespread suggests the Government would face few political objections if it renationalises the water utility, one thing it could must do no matter ideological choice.
Leaving politics apart, what concerning the cash? The objection to such a deal can be that already strained Government coffers simply can’t afford it. I’d say the price of shopping for Thames Water again for the nation would value about this a lot: £0.
Let’s say the Government performs good and decides to present buyers some cash for Thames (it might simply seize it).
And let’s say £10 billion is the determine agreed.
In stability sheet phrases, the Government has a legal responsibility of £10 billion. And an asset of… £10 billion.
The approach a banker would take a look at this is able to be to say that if the general public sector should purchase an asset at a distressed worth then it’s kilos in slightly than out.
The banker may additionally say to a purchaser, if the lifetime worth of dividends from Thames Water would possibly exceed £10 billion, then you might be much more quids in.
Even in case you hate the thought of the Government proudly owning our utilities , there isn’t a affordable monetary objection to purchasing Thames Water
