Thames Water board approved £150m payout hours before funding U-turn

Exclusive: Ofwat to investigate circumstances around payment of dividend to intermediate parent company

The board of Thames Water agreed to pay a 150m dividend hours before its shareholders U-turned on plans to pump emergency funding into the struggling water supplier, the Guardian can reveal.

The water industry regulator was examining the decision by the debt-laden company's board to sign off the payout at a meeting on 27 March, sources said.