Pennon Launches 550M Rights Issue
Pennon launched a £550 million rights issue and cut its dividend to fund an infrastructure overhaul. The new CEO also plans to sell assets to reduce debt, sending shares to a fifteen-year low.
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PENNON GROUP PLC launched a £550 million ($729 million) rights issue and cut its dividend on Wednesday morning to fund an operational overhaul. The capital raise sent the United Kingdom water utility's shares tumbling to a 15-year low. Investors are absorbing the move as new leadership attempts to address a £4.51 billion debt pile and intense regulatory pressure over environmental standards.
