17th Nov 2021 06:58
(Alliance News) - SSE PLC is considering disposing its electricity network assets after facing pressure from Elliott Investment Management, an activist investor, Bloomberg reported on Tuesday.
Citing people familiar with the matter, Bloomberg also reported the Perth, Scotland-based company is mulling boosting capital expenditure in its renewables arm. Bloomberg added that plans could be announced on Wednesday, when SSE presents its interim results and outlines a strategic update.
SSE owns Scottish & Southern Electricity Networks, which carries electricity to over four million UK homes and businesses.
In September, Bloomberg reported Elliott was seeking to break up SSE. Citing people with knowledge of the matter, Bloomberg said the investor held talks with representatives from SSE as well as major shareholders. Discussions were particularly focused on the separation of SSE's renewable portfolio from its regulated electricity businesses.
https://www.bloomberg.com/news/articles/2021-11-16/sse-is-said-to-consider-stake-sale-in-power-network-assets?srnd=deals
SSE's portfolio includes around four gigawatts of onshore wind, offshore wind and hydro assets. The company is eyeing to treble its renewables output by 2030, compared to 2019's levels.
SSE shares closed up 0.1% at 1,658.50 pence each in London on Tuesday. The stock has risen 11% since the start of the year.
By Eric Cunha; [email protected]
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