16th Apr 2015 06:52
LONDON (Alliance News) - Water utility and waste management company Pennon Group PLC on Thursday said it has struck a deal to acquire Bournemouth Water from Sembcorp Holdings Ltd for GBP100.3 million and will launch a share issue to fund the deal.
FTSE 250-listed Pennon, which owns South West Water, said it has acquired the entire share capital of Sembcorp Bournemouth Water Investments Ltd for GBP100.3 million in cash. The business is the holding company for Sembcorp Bournemouth Water Ltd, a regulated water company serving the Bournemouth region.
For the year to the end of December, the Bournemouth Water generated a pretax profit of GBP10.2 million on revenue of GBP49.2 million.
The deal has been agreed and immediately completed and will now be referred to the Competition and Markets Authority, the UK's competition regulator, for clearance.
To finance the deal, Pennon will launch a share issue to raise around GBP100.3 million via an accelerated bookbuild. The pricing of the issued shares will be determined by the bookrunners on the deal, Morgan Stanley and Credit Suisse, after the bookbuild is completed.
"Bournemouth is a top-performing water company and is an excellent business fit with South West Water's existing operations. The combined business will provide an enhanced platform for innovation and growth ahead of market liberalisation in 2017 and will better serve both Bournemouth and the South West, delivering tangible benefits to customers and shareholder," said Pennon Executive Director Chris Loughlin, who is the chief executive of its South West Water division.
By Sam Unsted; [email protected]; @SamUAtAlliance
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