Pennon Group shareholders have approved the sale of its waste business Viridor to Kohlberg Kravis Roberts & Co LP for £4.2 billion.
At an online general meeting the sale was approved by shareholders with more than 99 per cent voting in favour of the decision.
The sale was mooted last year and, in a trading, update this March Pennon announced it would go ahead and the rest of the company would pursue growth options in water and wastewater.
Pennon said EU merger clearance in relation to the sale had been obtained and completion is expected in early summer.
The parent company of South West Water, which is due to publish its full-year results in June, said the funds would be used to reduce the company’s borrowing and make a return to shareholders as well as retaining some funds for growth opportunities.
Last year the company said its growth in profits was largely due to strong EBITDA in the waste management business, with its energy recovery facilities outperforming expectations.