MID KENT Water, one of the county’s chief water suppliers, has been sold to an Australian investment house.

In a deal worth £241 million specialist utilities investor Hastings Fund Management has bought the Snodland-based utility company.

Mid Kent Water’s owner, German bank West LB said that the sale of Mid Kent Water was part of a gradual reduction in its non strategic holdings. The water company’s departure follows that of the Pubmaster chain and Odeon Cinemas.

These companies were part of a controversial investment unit created by City high flier Robin Saunders, but since her departure from West LB in December 2003 the businesses have been sold off.

One of the first to comment on the sale was former Mid Kent chairman Keith Tozzi. Mr Tozzi has long been an advocate of stronger strategic management of water supply in Kent and made an unsuccessful bid for Mid Kent Water early in 2004.

Mr Tozzi said: “We must wait now and see what the new owner’s strategy is. I have always said that for the good of the customer and for future South East water supplies, a consolidated approach is needed.”

Mid Kent Water employs 300 staff and supplies water to 600,000 customers. Details of staffing changes will not be known until the acquisition process is finalised in two weeks' time.