Pennon's Viridor ups stake in UK waste-to-power plant

Pennon said on Friday that its waste recycling business, Viridor, has upped its stake in UK waste-to-power plant the Runcorn I Energy Recovery Facility for £54.5m.

Viridor has exercised its pre-emption rights and agreed to buy a 37.5% economic interest and 20% voting rights in the facility from joint venture partner John Laing Investments.

Pennon said: "The acquisition will consolidate further Viridor's leading market position in UK energy recovery and will result in an increase to Pennon's economic interest in INEOS Runcorn (TPS) Holdings Limited from 37.5% to 75%, with the associated voting rights moving from 20% to 40%."

It is expected that a sale and purchase agreement will be entered into shortly and that the transaction could complete this year.

At 1440 GMT, the shares were up 0.3% to 711.60p.