Pennon Group PLC Announces Retail Offer and Equity Capital Raise

Pennon Group PLC has announced a conditional retail offer via PrimaryBid of new ordinary shares of 61.05 pence each in the capital of the Company. The Retail Offer is open to new and existing investors in the UK, including WaterShare+ customers in the UK and Company employees. The Company is also conducting a non-pre-emptive placing of new ordinary shares to both existing institutional shareholders and new institutional investors through an accelerated bookbuilding process. Additionally, certain directors and executives of the Company intend to subscribe for new ordinary shares. The issue price for the Retail Offer Shares, as well as the Subscription Shares, will be equal to the Offer Price.

The Retail Offer is in connection with the Acquisition of Sumisho Osaka Gas Water UK Limited, for which Pennon is launching an Equity Capital Raise of up to 180 million in aggregate. The purpose of the Equity Capital Raise is to ensure that the pro forma leverage and capital structure for the enlarged Group following the Acquisition remains consistent with Pennon's well-established water business gearing range of 55-65%. The Company values its retail investor base and is therefore pleased to provide retail investors with the opportunity to participate in the Retail Offer.

Members of the public in the UK can access the Retail Offer through PrimaryBid's website and app. Investors can also participate through PrimaryBid's partner network of investment platforms, retail brokers, and wealth managers. WaterShare+ customers in the UK can also participate in the Equity Capital Raise through the Retail Offer. The Retail Offer will be open to retail investors following the publication of the announcement and will close at the same time as the Bookbuilding Process is completed. Subscriptions under the Retail Offer will be considered by the Company with preference to be given to the Company's existing retail investors. The issue price for the Retail Offer Shares will be equal to the Offer Price, and there is a minimum subscription of 250 per investor under the terms of the Retail Offer.