Thames Water has received a preliminary 7 billion pound ($8.86 billion) bid from Hong Kong’s CK Infrastructure for a majority stake, the Financial Times reported on Friday, citing people familiar with the matter.

CK Infrastructure indicated that it would require bondholders of the UK’s biggest water supplier to take significant haircuts when it made the proposal earlier this month, the FT report said.

Thames Water secured court approval for a 3 billion pound debt lifeline provided by senior creditors this week, warding off the collapse and state rescue of the utility struggling with 18 billion pounds of debt.

The utility declined to comment on the FT report. CK Infrastructure did not immediately respond to a Reuters request for comment.

Thames had said earlier this month that it had receivedseveral bids for an equity process without naming potential investors.

U.S. private equity group KKR offered nearly $5 billion to Thames Water for a majority stake in the utility, Bloomberg reported on Wednesday, citing people familiar with the matter.

Earlier in February, Thames Water lodged an appeal to Britain’s competition regulator in a bid to raise the prices it can charge customers for the next five years.

Water regulator Ofwat has said Thames Water can increase bills by 35 per cent over 2025-2030, less than the 53 per cent rise the company says it needs.

($1 = 0.7903 pounds)