Thames Water announced on Monday it had moved forward into the Phase 2 stage of equity raise with global investment firm KKR.

The company said it expects to finalise the terms of the deal by the second quarter of 2025, with the capital raised expected to be completed in the last six months of the year.

The firm said it had selected KKR as a preferred partner following a “detailed assessment of proposals received”.

It added it remained focused on “putting Thames Water on a more stable financial foundation, implementing its turnaround plan and delivering a market led solution that is in the best interests of customers, UK tax payers and the wider economy”.

KKR’s proposal bid included aiding the firm in the reduction of its Class A debt.

The company said further details of the proposal were still in discussion.

It added there was still no guarantee a binding agreement would be reached, with proposals still subject to further diligence, documentation and other regulatory measures.