Pennon Group plc on its rights issue to raise gross proceeds of approximately £550mn

Slaughter and May is advising Pennon Group plc, an environmental infrastructure group focused on the UK regulated water sector and owner of South West Water, Bristol Water, Bournemouth Water and SES Water, on its rights issue to raise gross proceeds of approximately £550mn, as announced on 7 October 2026. The purpose of the rights issue, which is fully underwritten, is to enable Pennon, as part of a wider funding plan, to deliver its strategic plan to improve operational performance across the group and to invest in the additional growth available through Ofwat's cost change process through the remainder of the AMP8 period to March 2030, whilst ensuring appropriate and sustainable gearing is maintained throughout.