Business
Viridor sale completion, Board changes and AGM
Viridor sale completion, Board changes and AGM.
About this update from Pennon Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 4282S\n Pennon Group PLC\n 08 July 2020\n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n 8 July 2020\n \n \n PENNON GROUP PLC\n \n \n Completion of Viridor Sale, Board Changes and Notice of AGM\n \n \n \n \n \n Completion of Viridor Sale\n \n \n \n Pennon Group plc (\"Pennon\") is pleased to announce that it has completed the sale of Viridor to funds advised by Kohlberg Kravis Roberts & Co. L.P. for an enterprise value of £4.2 billion. As anticipated, the cash proceeds received by Pennon were £3.7 billion, after taking into account debt and debt-like items that remained with Viridor and customary transaction costs. \n \n \n \n \n \n With the disposal of Viridor, significant strategic value has been realised and Pennon will now focus on its sector leading water and wastewater businesses, whilst considering further growth opportunities that create value for customers, employees and shareholders. \n \n \n \n \n \n As previously announced, Pennon will consider the best use of net cash proceeds in terms of reducing Pennon's company borrowings and pension obligations, retaining funds for opportunities and making returns to shareholders.\n \n \n Of the current £1.2 billion Pennon company borrowings, up to £900 million will be retired in the months following completion. £36 million will be injected into the Pennon Group pension scheme, which will move the scheme closer to being fully funded on a technical provisions basis. \n \n \n \n \n \n Pennon will now review the most efficient and effective method of returning value to shareholders, alongside considering earnings accretive market opportunities. \n Any potential investment will be assessed in terms of value creation and the impact on shareholder returns, income and growth, as well as the impact on customers and other stakeholders. Any use of capital to pursue an investment opportunity will be compared with the alternative of returning that capital to shareholders, maintaining our strong focus on financial discipline. \n We aim to update shareholders on this review at Pennon's half year results announcement in November 2020. \n \n \n \n Board Changes\n \n \n \n The success of the strategic review significantly changes the structure of the Group. This impacts curr...