UK's Pennon snaps up Bristol Waters for 425 million pounds, unveils special dividend

© Reuters.

(Reuters) – British water company Pennon Group (LON:) has bought smaller peer Bristol Water for 425 million pounds ($601 million), calling the acquisition an attractive opportunity to expand the capabilities of its South West water unit.

The company on Thursday also set a special dividend of 1.5 billion pounds for shareholders and announced a share buyback programme worth up to 400 million pounds.

Shares of Pennon were up 4.2% at 1,113.5 pence in early trading.

Pennon in March had said it would make a “substantial” return of capital to shareholders using proceeds from the 4.2-billion-pound sale of its unit Viridor.

The company on Thursday posted a 14.2% fall in underlying profit before tax to 157 million pounds for the year ended March 31, as demand fell during COVID-19 lockdowns. The result was in line with its expectations.

It also said its dividend base in 2021/22 should grow by 9% thanks to earnings from Bristol Water.

($1 = 0.7066 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

READ  Metals tycoon Gupta to close loss-making Commonwealth Trade Bank



Please enter your comment!
Please enter your name here