BRADFORD-based utilities firm Yorkshire Water is facing a battle for control of the business after the holder of nearly a third of the shares put its stake up for sale.

American banking giant Citigroup is looking to offload its £2 billion stake in Yorkshire Water parent group Kelda, amounting to around 30 per cent of the shares.

Kelda Group also includes water and waste management contractor Kelda Water Services, Thornbury-based Loop Customer Management Ltd and the property business KeyLand Developments.

Citibank has appointed investment bank Evercore to offload its stake in the £6 billion water business whose value has increased substantially since it was acquired in 2008.

Yorkshire Water has reported its best-ever performance levels with significant investment plans in place over the next five years. It plans to spend around £3.8 billion operating and improving the region’s water and sewerage infrastructure to deliver better quality drinking water, cleaner rivers and improved customer service.

A Yorkshire Water spokesman said: “We are aware of Citi’s decision to review its investment in Kelda. It is not unusual companies to trade their investments.”

According to City sources, a sale of Citibank’s substantial stake could trigger a battle for control of the water group as two other major investors, pension fund giant M&G, which owns 23 per cent, and Deutsche Bank, with 10 per cent, are also reportedly considering selling their stakes.

GIC, Singapore’s sovereign wealth fund, is understood to be keen to keep its 26 per cent stake.

The share sale would be one of the largest utilities deals in years and follows comments by Ofwat chief executive Jason Cox that he was open to consolidation in he sector, leading to speculation there will be a tide of utilities mergers and acquisitions.

Yorkshire Water is the UK’s fifth largest water company, Meanwhile, in Calverley-based car leasing firm Zenith, Leasedrive are reportedly in for a £100 million windfall after the firm agreed with its lenders to pay one of the UK’s biggest private dividends this year.

The payout comes a year after the current business, which has 500 employees, was created through the merger of Zenith Vehicle Contracts and Leasedrive Group. It is now owned by private equity firm Hg Capital, and operates more than 64,000 vehicles for mainly blue chip clients.

Zenith has agreed a refinancing deal with HSBC, Intermediate Capital Group, Lloyds Banking Group and the Royal Bank of Scotland to increase its borrowing facilities to £250million.