14th Mar 2016 07:11
LONDON (Alliance News) - SSE PLC Monday said it has signed agreements to sell a 49.9% stake in the Clyde wind farm located in South Lancashire to Greencoat UK Wind PLC and and GMPF & LPFA Infrastructure LLP for a headline consideration of GBP355.0 million.
The wind farm is operational and has a current capacity of 349.6 megawatts, but SSE said once the current 172.8 megawatt expansion at the wind farm is completed then the equity stakes in the project will be diluted.
Following the expansion of the farm, when it will have a capacity of 522.4 megawatts, SSE will hold a 70% stake and the stake held by Greencoat annd GMPF & LPFA will amount to 30%.
That expansion is expected to be completed in June 2017.
In addition, SSE will provide long-term management services to the day-to-day operations of the farm, and organise a long-term route to market for the power generated from the operation, it said.
"In March 2014 SSE announced a disposal programme with intended proceeds and debt reduction of GBP1.00 billion from the sale of non-core assets and businesses and the sale of existing or in-development onshore wind farms. Today's announcement takes the total proceeds achieved to date in excess of that target and will release capital to support future investment," said SSE.
"We are pleased to announce UKW's latest acquisition, which will deliver an attractive investment return, in line with the existing portfolio. We are delighted to extend our relationship with SSE and co-own Clyde, one of the largest onshore wind farms in the UK," said Tim Ingram, chairman of Greencoat UK Wind.
By Joshua Warner; [email protected]; @JoshAlliance
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