UK's Pennon launches £550 million rights issue, cuts dividend to fund investment

Oct 7 (Reuters) - British water utility Pennon Group launched a fully underwritten £550 million ($728.5 million) rights issue and lowered its dividend in a bid to fix operational problems at its regulated water business. Here are some details: • The owner of South West Water and SES Water said the capital raise would help fund roughly £1 billion of additional investment, part of a wider operational reset led by new Chief Executive Keith Haslett • Capital investment in regulated water business over the eighth asset management period of five years to March 2030 is now expected to reach about £3.6 billion, around £1 billion more than originally planned • The company is considering the sale of Pennon Power, its renewables investment arm, to focus on its core water business and to reduce debt, which stood at £4.51 billion at the end of March • Pennon also reduced its total dividend for financial year 2026/27 to about £125 million from £138 million in 2025/26, implying an about 30% cut in dividend per share • The update comes after British Prime Minister Andy Burnham said in September he would legislate to repeal a ban on the public ownership of water companies • Britain's water industry has come under intense scrutiny for environmental breaches, high dividend payouts and rising customer bills ($1 = 0.7550 pounds) (Reporting by Nithyashree R B in Bengaluru; Editing by Mrigank Dhaniwala)

Source: Euronext Markets: Real-time Stock Market Data | live