Pennon may return unit sale cash to shareholders if it fails to find suitable deals

(Reuters) - Pennon Group Plc said on Tuesday it would consider returning proceeds from its 4.2 billion pound ($5.78 billion) sale of its waste management unit to shareholders if it failed to find suitable investment opportunities in the UK water sector.

The South-West Water owner said it is continuing to narrow down its review of potential growth opportunities, and it would make a substantial return of capital to shareholders in the absence of a major value accretive investment opportunity.

The London-listed company, which is on track to deliver financial results in line with management expectations, said it would provide clarity on the returns by the time of its full-year results on June 3.

($1 = 0.7263 pounds)

(Reporting by Shanima A in Bengaluru; Editing by Rashmi Aich)