Utilities group Pennon has acquired the holding company of Sutton and East Surrey Water (SES Water) and other ancillary businesses in a 拢89m deal.
The owner of Bristol water and South West Water announced that it acquired 100% of the issued capital Osaka Gas Water 海角视频 from Sumitomo Corporation and Osaka Gas. The Exeter-based group added that it intends to issue new shares to raise up to 拢180m to help fund the deal. SES Water and other ancillary businesses has over 750,000 customers and a forecast shadow Regulatory Capital Value of 拢351m.
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Chief executive Susan Davy said: 鈥淪ES Water is a fantastic fit for Pennon as we further expand our presence in water supply across Southern England, building on our successful similar acquisitions of Bournemouth Water and Bristol Water alongside the adoption of water supply in the Isles of Scilly.
鈥淭he business is a proven, high-quality water operation. We are particularly impressed by the innovation and technology-led solutions implemented by SES Water.
鈥淎s part of the Pennon Group, we will enhance SES Water鈥檚 financial resilience and better position the business to serve its customers and all stakeholders, as has proven to be the case with our acquisitions of Bournemouth Water and Bristol Water.鈥
She added: 鈥淲e are able to invest in SES Water鈥檚 resources infrastructure, environment and people thanks to our strong financial performance and long-term 海角视频 shareholder base, delivering a seamless transition for SES Water鈥檚 customers while also providing a more robust and reliable service in the medium term.
鈥淲e expect SES customers to benefit from Pennon鈥檚 stewardship of the business, including being able to offer them the opportunity to participate in our unique WaterShare scheme and participate in the ownership of their local water provider.鈥
In its half year results announced at the end of last year (November 29) Pennon saw its profits fall 90%. The group added profit after tax dropped from 拢18.5m to 拢1.8m in the first half of the year. Pennon blamed the drop on higher inflation driving costs.
The group reported non-underlying cost items before tax of 拢5.9m, including one-off costs of business transformation, drought and renewable energy acquisitions.
