Pennon acquires Bournemouth Water for £100m

16th Apr 2015 08:08

Waste management and water utility company Pennon Group has reached an agreement to acquire Bournemouth Water from Sembcorp Holdings for £100.3m.The company, which owns South West Water, said it will launch a share issue to fund the acquisition. The pricing of the issued shares will be determined by Morgan Stanley and Credit Suisse, the firms acting as bookrunners on the deal."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," said Pennon executive director Chris LoughlinIn the year to the end of December, Bournemouth Water generated pre-tax profit £10.2m, with revenue of £49.2m.Pennon shares were down 1.01% to 832.50p at 08:26 on Thursday.