Severn Trent investors left on sidelines - The Times
Severn Trent investors left on sidelines
Thousands of the most loyal share-holders of Severn Trent yesterday missed out on the chance to profit from a £1 billion capital-raising as the water company chose to tap only its largest investors for the cash.
The shares soared as the market cheered the fundraising plan, but it left the 41,000 retail investors, many of whom have backed the company since privatisation in 1989, on the sidelines.
The company was able to sidestep the normal rules that require companies to give existing shareholders first refusal on new shares in large capital-raisings after passing a special resolution at its annual meeting in July.
The FTSE 100 company tapped the sovereign wealth fund of Qatar for £500 million and successfully raised another £493 million from large institutional
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”