Bank of America Corporation has disclosed a significant increase in its combined holding of voting rights and financial instruments in Pennon Group Plc (PNN), the UK-listed water and wastewater services company. The TR-1 regulatory notification, filed on 29 October 2026, confirms that Bank of America crossed the 5% threshold on 27 October 2026, reaching a total combined position of 5.373451%. The move represents a dramatic rise from a previous combined position of just 0.257457%, a change that investors in the FTSE-listed utility will be watching closely.

Key Points

  • Pennon Group Plc (PNN) — UK-listed water and wastewater services provider
  • Bank of America Corporation disclosed a combined voting rights position of 5.373451% in Pennon Group, crossing the 5% notification threshold on 27 October 2026
  • Total voting rights held: 25,361,692; previous combined position was 0.257457%; direct and indirect share voting rights account for 3.215495% of the total
  • Investors should watch whether Bank of America's position changes further, triggering additional disclosure obligations under DTR5

Bank of America's Combined Position in Pennon Jumps from 0.26% to 5.37%

The notification discloses that Bank of America Corporation's total combined position in Pennon Group rose sharply from a previous level of 0.257457% to 5.373451% on 27 October 2026. Of this total, 3.215495% represents voting rights attached to shares, held both directly and indirectly. The remaining 2.157956% is attributable to financial instruments, split between rights to recall stock and depositary receipts under DTR5.3.1R(1)(a), and a range of cash-settled swaps and options under DTR5.3.1R(1)(b). The total number of voting rights held in the issuer stands at 25,361,692.

Merrill Lynch International Named as Key Shareholder Within Bank of America Group

The announcement identifies Merrill Lynch International, registered in London, as the principal shareholder within the Bank of America group for the purposes of this notification. The disclosure states that Merrill Lynch International holds a combined position of 4.644140% through both direct voting rights of 3.050236% and financial instruments. Additional controlled undertakings listed within the Bank of America corporate chain include Bank of America National Association, U.S. Trust Company of Delaware, BofA Securities Europe SA, and BofA Securities Inc., reflecting the breadth of the group's involvement in the position.

Cash-Settled Swaps and Options Make Up Over 1.57% of Pennon Holding

The financial instruments component includes a sizeable portfolio of cash-settled swaps and options with expiry dates ranging from November 2026 through to April 2032. The largest single swap position, expiring 15 October 2027, accounts for 0.515750% of voting rights. Rights to recall common stock contribute a further 0.578880%. Pennon Group, which provides regulated water services primarily in South West England, operates in a sector subject to close regulatory oversight by Ofwat, meaning any shifts in major institutional holdings can attract particular attention from market participants monitoring the company's capital structure.