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Pennon taps investors with 550m cash call for South West Water fixes

The cash call comes days after the company received a record £7.9m fine tied to hundreds of sewage spills.

Reported · Written up by our desk · M&A & Deals

South West Water owner Pennon said it will raise £550m from investors through a cash call as it seeks funding for a wider infrastructure plan. The company framed the move as part of a £1bn investment program aimed at improving outcomes for customers and communities, after recent enforcement over sewage spills.

Pennon also said it has slashed its dividend, and shares fell sharply following the announcement, making the stock the biggest decliner on the FTSE 250 index. Pennon said South West Water supplies water to about 3.5 million customers across the south-west of England, plus 380,000 business customers across the UK.

The plan follows a record £7.9m fine issued days earlier for hundreds of sewage spills. Pennon appointed Keith Haslett as chief executive in April, and the article says he conducted a comprehensive review of the business and identified areas for action.

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