(Alliance News) - Pennon Group PLC on Wednesday said it will start the third phase of its share repurchase programme for up to GBP40 million.
The Exeter-based water utility's shares sunk 3.8% to 1,178.00 pence each in London on Wednesday morning.
"The purpose of the Programme is to reduce share capital, and completion of the Programme is subject to Pennon's continued review of value creating opportunities in the UK water sector," Pennon said.
The programme was first started in July, with the first two phases having around GBP110 million in total at their disposal. The programme got the nod from shareholders to buy back around GBP400 million worth.
Morgan Stanley & Co International PLC is acting as principal.
Further phases are expected to commence over the period to September 30, 2022.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Pennon (PNN)