FRANKFURT, May 2 (Reuters) - A consortium led by Germany’s Allianz has agreed to buy a 90 percent stake in British water utility Affinity Water from Infracapital and Morgan Stanley Infrastructure for 687 million pounds ($884 million), the companies said on Tuesday.
* As part of the transaction, the buyers are also purchasing Veolia Water UK Ltd’s 10 percent indirect stake in Affinity, they said
* The transaction is expected to be completed by the end of May
* Affinity Water owns and manages the water assets and network in an area of around 4,500 square kms in the southeast of England. It supplies 1.5 million homes and businesses.
* The buyer consortium comprises Allianz with a 36.6 percent stake, DIF with 26.9 percent and HICL, managed by InfraRed Capital Partners, with 36.6 percent.
* Citi acted as the financial advisor to Infracapital and MSI on the deal, with Clifford Chance LLP acting as legal advisor. ($1 = 0.7769 pounds) (Reporting by Maria Sheahan; Editing by Harro ten Wolde)