Ontario Municipal Employees Retirement System is writing off its entire investment in troubled British utility Thames Water, walking away from a stake once valued at well over $1-billion.
The financial filing also refers to the impasse that shareholders reached with Thames Water and its regulator, Britain’s Water Services Regulation Authority, or Ofwat. The “subsequent financial effect will be a full write down of the investment” and an outstanding loan, the filing says. On Thursday, OMERS Infrastructure managing director Michael McNicholas stepped down as a non-executive director of Thames Water.OMERS owns about 32 per cent of Thames Water’s parent company, Kemble Water Finance Ltd., through multiple subsidiaries. But OMERS has partners in its investment, which makes its direct exposure to losses somewhat lower. Another major Canadian pension fund, British Columbia Investment Management Corp. , owns nearly 9 per cent.
At the time, OMERS’s global head of infrastructure, Michael Hill, said that “shareholders can no longer invest money into a business where it has become clear that we will never get it back.”
Source: News Formal (newsformal.com)
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