Pennon Group raises 550 million pounds from investors after record sewage fine for its South West Water subsidiary

Pennon Group, the owner of South West Water, has announced a 550 million pound rights issue to fund an additional 1 billion pounds of investment in its water infrastructure. The move comes weeks after South West Water was fined a record 7.9 million pounds for sewage spills in Devon and Cornwall. Chief Executive Keith Haslett said the investment would improve services and environmental performance. The company will also cut its dividend by 30% and sell its Pennon Power business. The fine will be paid by shareholders, not customers.