South Staffordshire Plc, as the
immediate parent company of South
Staffordshire Water PLC, ensures
through its detailed knowledge of
all of its subsidiaries and the water
industry that it understands the
duties and obligations of a regulated
company including Condition P
of its licence and, although some
Directors sit on both Boards, South
Staffordshire Water PLC acts, where
applicable, with the support of the
Company, as if it were a separate
listed company. South Staffordshire
Plc has processes in place to provide
South Staffordshire Water PLC with
information that it requires about the
wider Group. South Staffordshire Plc
provides management, professional
and administrative support services
to South Staffordshire Water PLC and
other of its subsidiaries on a cost basis.
There is no direct interaction between
South Staffordshire Water PLC and the
Holding Company.
There are a number of UK registered
intermediate holding companies
above South Staffordshire Plc in
the Group structure, headed by
Hydriades IV Limited, the ultimate
holding company registered in the
UK. There are also intermediate
holding companies above Hydriades
IV Limited which are registered in
Jersey but which are resident in the
UK for tax purposes. In line with other
KKR investments in Europe, the parent
of the Jersey resident companies is a
company registered in Luxembourg
(Selena Luxco S.à.r.l.), which is the
company in which the long-term
infrastructure funds of KKR and their
co-investors invest. The KKR fund
investing in this company is controlled
Annual Report 2015
Group Structure
The Group is owned by the Global
Infrastructure Fund of the investment
business Kohlberg Kravis Roberts &
Co. L.P. (KKR), which is quoted on the
New York Stock Exchange, and which
holds a majority interest in the Group,
together with infrastructure funds
of certain co-investors of KKR. The
KKR Infrastructure Fund is controlled
and managed by KKR Infrastructure
Limited, a company registered in
the Cayman Islands (the “Holding
Company”).
and managed by the Holding
Company. Two of the UK holding
companies have loans payable to
South Staffordshire Water PLC, both
of which bear int erest which is paid
in full each year. Any UK tax losses
surrendered to South Staffordshire
Water PLC are paid for at face value.
Details of the borrowings of the
Group are provided in the financial
statements including the analysis of
net debt and the notes to the financial
statements. Similarly, details of the
borrowings of South Staffordshire
Water PLC are provided in its own
Report and Accounts.
The Board of Directors
The Board is collectively responsible
for the long-term success of the
Group’s businesses. The Board
comprises one Executive Director and
three Non-Executive Directors.
Directors may be appointed by the
Company by Ordinary Resolution
or by the Board. As set out in the
Company’s Articles of Association,
a Director appointed by the Board
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