UK Water Firm Pennon Targets £490 Million in Rights Offer (1)

UK water utility Pennon Group Plc is looking to raise about £490 million ($610 million) in a rights offering, bolstering its finances to pay for a five-year investment program agreed with the regulator.

The group is offering nearly 186 million shares at 264 pence apiece, with shareholders entitled to acquire 13 new shares for every 20 existing shares, Pennon said in a Wednesday statement. The offer represents a 35.2% discount to the theoretical ex-rights price of 408 pence, the company said.

Pennon’s subsidiaries supply water and sewerage services in southern England. The move to strengthen its balance sheet follows ...