The ailing business is saddled with debts which, it admitted, will swell to nearly £18bn next March.
Customers are facing a steep rise in their water bills. In July, Thames told the industry regulator Ofwat that it wanted to increase annual bills by 23% between 2025 and 2030.
Since then, Thames has said it needed to raise bills by 53%.
Thames could run out of money as soon as the first quarter of 2025, which is why its creditors secured a loan of up to £3bn to be released in two tranches, the first £1.5bn of which could be released in February.
There is no shortage of potential investors in Thames.
People close to the process have told the BBC there are up to six interested parties, some of whom have emerged publicly, such as Castle Water and Covalis.
Other possible buyers include Brookfield Asset Management, the Canadian investment giant chaired by the former Bank of England governor Mark Carney, and Hong Kong’s CKI which already owns a stake in Northumbrian Water.
All of these potential bids depend on two factors:
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How much pain are Thames’ lenders prepared to take? How much of the £18bn debt will be written off?
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How much will Thames be allowed to charge customers over the next five years?
Both of these are currently up in the air. There will be some more clarity on whether bidders will remain interested when Ofwat announces its final determination on bills for the next five-year period on 19 December.
One thing we do know is that Thames needs at least £4bn in new equity – that is money that does not have to be paid back.
Both Castle Water and Covalis have plans to list Thames on the stock exchange.
Castle Water, Covalis and Thames Water all declined to comment.
