20th Sep 2021 08:07
(Alliance News) -Â SSE PLC on Monday backed its net zero-aligned strategy as it pushed back on press reports over a possible break-up of the company.
SSE was responding to press reports after the Telegraph late Friday said SSE was close to being split into two separate blue-chip companies following pressure from US activist fund Elliott Management.
Elliott has been in talks with SSE's board to split the company's legacy wholesale networks business from its growing renewable energy operations for more than a year, according to the Telegraph, citing sources close to the situation.
Last Tuesday, Bloomberg reported that Elliott was seeking to break up SSE via a separation of its renewables portfolio from its regulated electricity businesses after building up a stake in the Perth, Scotland-based energy company.
The FTSE 100-listed company on Monday said it will provide an update on plans to "further accelerate growth in its portfolio" alongside its half-year results release in November, which will include details of significantly increased capital investment for the period to 2026, sources of funding and the company's vision for further growth into the 2030s.
"Following recent reshaping of the group, SSE's clear strategic focus is on renewables and regulated electricity networks, supported by carefully chosen businesses. SSE's businesses have exciting growth potential aligned with net zero targets and share common capabilities in the development, construction, financing, and operation of low-carbon electricity infrastructure," it said.
There has been no decision to break up the group, SSE said.
"SSE is the UK's national low-carbon energy champion, delivering for both our shareholders and society and we look forward to updating investors on our plans to accelerate growth and create value in due course," said Chief Executive Alistair Phillips-Davies.
SSE shares were trading 0.3% lower in London on Monday morning at 1,630.34 pence each.
By Lucy Heming;Â [email protected]
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