Wessex plans buybacks
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Wessex Water yesterday revealed a plan to spend pounds 240m on share buybacks combined with a move to buy out most of the stake held by its biggest outside investor.
The latest water industry buyback, which in effect means Wessex is buying up 25 per cent of its share capital, will see the 19.5 per cent stake held by Waste Management International (WMI), a US waste company, reduced to just 3.3 per cent.
Nicholas Hood, Wessex chairman, said pounds 157m would be spent on buying up 43.5 million non-voting `B' and `C' shares, all of which were issued to WMI after privatisation, along with a small number of the US group's ordinary shares.
A further pounds 79.5m will go on buying back 10 per cent of the ordinary shares held by other investors. The deal needs to be approved by shareholders at an extraordinary general meeting in the new year.
Wessex was left with surplus cash after the Government recently blocked its attempt to buy neighbouring South West Water.
The rival bidder, Severn Trent, this week also announced it had spent pounds 122m buying back 5 per cent of its shares. The buyback will raise Wessex's gearing to around 40 per cent.
Mr Hood said the joint venture waste management company between Wessex and WMI would continue as before, though the buyback did not preclude further acquisitions. He explained: "There's a lot of speculation, but all I can say is we are reserving our firepower."
Wessex shares slipped 0.5p to 365.5p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments