United Utilities is approaching the end of its strategic move to sell all non-core assets unrelated to its regulated water business.
Starting in November last year with the sale of its interest in Manila Water Company and the disposal of its operational contract in Northern Gas Networks, United has now sold the group's non-regulated water assets for £174m and the Australian business for approximately £134m. This week saw the operational contract with Electricity North West return to the provider, and so the divestment programme has totted up around £450m of the total value of £500m-£600m that analysts placed on the non-core assets.
Lakis Athanasiou of Evolution Securities believes the group has secured "reasonable" prices for all the sales and commends the "strategic" move to focus on what United does best. Recent inflation has also helped the group's financial position, Mr Athanasiou says, because debt as a proportion of the group's regulated asset base is now smaller.
When: 26/03/10
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