Pennon Group secures funds for acquisition through share placement
- Pennon Group to raise around GBP180 million via discounted share placing
- Funds will be used to finance the purchase of Sutton and East Surrey Water
- 23.7 million new ordinary shares will be placed at 730 pence per share
- Certain directors and executives will subscribe for 20,537 new ordinary shares
- Retail investors subscribed for 925,000 new ordinary shares
- Pennon Group bought Sutton and East Surrey Water for GBP89 million
- Proceeds from share placing will ensure the group remains within its water business gearing range
Pennon Group has announced plans to raise approximately GBP180 million through a discounted share placing. The funds will be used to finance the acquisition of Sutton and East Surrey Water. The company will place 23.7 million new ordinary shares at a price of 730 pence per share, representing a discount of around 2.6% to the previous day’s closing price. In addition, certain directors and executives will subscribe for 20,537 new ordinary shares, while retail investors have subscribed for 925,000 new ordinary shares. Earlier, Pennon Group completed the purchase of Sutton and East Surrey Water for GBP89 million. The proceeds from the share placing will help the company maintain its water business gearing range. Shares of Pennon Group are currently trading at 756 pence, up 0.9%.
Public Companies: Pennon Group (N/A), Sumitomo Corp. (N/A), Osaka Gas (N/A)
Private Companies: undefined
Key People: Anthony O. Goriainoff (N/A)
Factuality Level: 8
Justification: The article provides clear and specific information about Pennon Group’s plan to raise funds through a share placing, subscription, and retain offer. It also mentions the purpose of the funds, which is to finance the purchase of Sutton and East Surrey Water. The article includes details about the number of shares being placed, the price at which they are being placed, and the discounts offered. It also mentions the involvement of directors, executives, and retail investors in the share offering. The article concludes by mentioning the increase in share price. Overall, the article provides factual information without any apparent bias or misleading elements.
Noise Level: 7
Justification: The article provides information about Pennon Group’s plan to raise funds for the purchase of Sutton and East Surrey Water. It includes details about the share placing, subscription, and retail offer. However, it lacks analysis of long-term trends or antifragility. It also does not hold powerful people accountable or provide scientific rigor. The article stays on topic and provides some evidence and data, but it does not offer actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the financial topic of Pennon Group raising funds through a share placing, subscription, and retain offer to finance the purchase of Sutton and East Surrey Water. This may impact the company’s stock price and potentially attract new institutional investors.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article does not describe any extreme events. It focuses on a financial transaction and the acquisition of Sutton and East Surrey Water by Pennon Group.
www.marketwatch.com 
