Pennon Group PLC
25 May 2004
The board of Pennon Group plc ('Pennon' or 'the Group') notes the announcement
made by Shanks Group plc ('Shanks') that it has agreed to sell its UK landfill
and related power operations ('UK landfill business') to Terra Firma Capital
Partners ('Terra Firma') for a total cash consideration of £227.5m.
Pennon stated in its announcement on 17 May 2004 that the acquisition of
Shanks's UK landfill business would have to satisfy the Group's normal criteria
for any investment in the waste management sector, as well as reinforcing
Pennon's progressive dividend policy. The price agreed between Shanks and Terra
Firma would not have satisfied Pennon's investment criteria.
The Group has an established track record of profitable growth in the waste
management market and remains committed to strengthening its leading position in
that market through further organic growth and acquisitions that meet Pennon's
As previously indicated, Pennon's preliminary results for the year ended 31
March 2004 will be released at 7.00am on 27 May 2004. There will be a
presentation to analysts and investors at the City Presentation Centre, 4
Chiswell Street, EC2 at 9.00am.
Finsbury (020) 7251 3801
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