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WESSEX WASTE MANAGEMENT ACQUIRES WASTE MANAGEMENT LIMITED FROM NFC PLC AND WESSEX WATER PLC ANNOUNCES FUND RAISING

 LONDON, Jan. 26 /PRNewswire/ -- Wessex Water Plc ("Wessex") today announced an important acquisition and major fund raising.
 The acquisition of Waste Management Limited ("WML") from NFC plc is being made by Wessex Waste Management Ltd., the joint company owned by Wessex Water plc and a subsidiary of Waste Management International plc. Wessex' share of the cost of the acquisition is an initial payment of 49 million pounds with a balance of 7.5 million pounds payable over the next three years.
 WML's main business is in waste collection, transportation and disposal. It handles a wide range of waste from the industrial, commercial and local authority sectors.
 To finance both this expansion and prepare for further potential investment opportunities, Wessex is proposing to raise 144.5 million pounds in new share capital. The funds are being raised by a Rights Issue to Ordinary shareholders of 80.0 million pounds. Associated Offers to UK Waste Management Holdings of 19.6 million pounds and additional low cost financing of 44.9 million pounds from UK Waste Management Holdings.
 The basis of the Rights Issue, which is fully underwritten, is one new Ordinary share at 480 pence per share for every six ordinary shares held.
 Nicholas Hood, Wessex Water Plc chairman, said" "This expansion will increase Wessex' earnings in areas of business outside price regulation. Wessex Waste Management was set up two years ago with the objective of becoming the U.K.'s leading waste management company. The joint company is already a significant force in the waste management industry and is making a positive and growing contribution to the profit of Wessex Water Plc.
 Legislation is stimulating change in the waste management industry and creating business opportunities for Wessex Waste Management. The joint venture company has, in the course of the last 12 months, looked carefully at a considerable number of further possible acquisitions but will only proceed if an acquisition makes sound commercial and financial sense."
 The Directors believe that, following the Issues and the Acquisition, Wessex Waste Management's position in the waste management industry in the U.K. will be significantly enhanced and that it will be well positioned to take advantage of the opportunities available to it now and in the future.
 Wessex Water plc has been advised by S.G. Warburg & Co. Ltd. who have also fully underwritten the Rights Issue. Panmure Gordon & Co. Limited are brokers to the issue.
 -0- 1/26/93
 /CONTACT: Nicholas Hood, chairman of Wessex Water Plc, 071-353-9203; Mark Seligman or Peter Thickett of S.G. Warburg & Co. Ltd., 071-860-1090; or Bob Gregory Lowe of Bell Financial, 071-353-9203/


CO: Wessex Water PLC; Waste Management Limited ST: IN: SU: TNM

SH -- NY072 -- 9128 01/26/93 13:56 EST
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Publication:PR Newswire
Date:Jan 26, 1993
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