1st Sep 2014 14:49
LONDON (Alliance News) - SSE PLC Monday said it has sold SSE Pipelines Ltd, a UK licensed independent gas transporter, to the Environment Capital Fund, a new fund managed by Scottish Equity Partners LLP, for an estimated GBP52.7 million, as part of the company's programme of planned asset and business disposals.
In a statement, SSE said that Scottish Equity Partners has raised a commitment of GBP135.0 million for the infrastructure fund to invest in UK-based clean energy projects, which SSE Pipelines Ltd will anchor. SSE will initially invest GBP13.8 million for a "significant" minority stake in the fund.
The Environment Capital Fund is also backed by a syndicate of financial investors led by Lexington Partners, an independent manager of secondary private equity and co-investment funds, according to SSE.
"We have identified a range of assets and businesses which are not core to SSE's future plans and this disposal represents the latest step in the programme to significantly simplify the SSE group and secure proceeds and debt reduction estimated to total around GBP1 billion," SSE Finance Director Gregor Alexander said in a statement.
"This transaction will ensure resources are fully focused on what is important and relevant to SSE PLC's core purpose of providing the energy people need in a reliable and sustainable way whilst supporting future investment in clean energy," Alexander added.
SSE said the Environmental Capital Fund complements Scottish Equity Partners' Environmental Energies Fund, which was launched in 2011 and acquired a portfolio of venture capital and private equity cleantech investments from SSE.
No employees will transfer as part of the disposal, according to SSE.
SSE shares were Monday quoted up 0.1% at 1,518.70 pence.
By Samuel Agini; [email protected]; @samuelagini
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