2nd Aug 2021 08:24
(Alliance News) - SSE PLC on Monday said it has wrapped up its disposal programme, selling its 33% stake in a UK gas distributor for GBP1.23 billion.
It means the Perth, Scotland-based energy company has netted GBP2.7 billion from its disposal scheme.
"The programme has realised significant value from non-core assets while intensifying SSE's strategic focus on its core low-carbon electricity businesses and the transition to net zero," SSE said.
"The disposal proceeds will reduce net debt in the short term and will help support the delivery of SSE's capital investment plans."
SSE explained the GBP1.23 billion sale of its 33% interest in gas distribution firm Scotia Gas Networks Ltd will be completed during the current financial year. SSE's financial year ends in March.
Scotia Gas Networks includes Scotland Gas Networks PLC and Southern Gas Networks PLC, two gas distributors in England, Wales and Scotland. SGN Natural Gas Ltd, a provider of gas in western Northern Ireland, is also part of SGN.
The stake was sold to a consortium which includes Brookfield Super-Core Infrastructure Partners, part of Brookfield Asset Management Inc, and the Ontario Teachers' Pension Plan Board. The pension plan is already an existing shareholder in SGN.
SSE bought a 50% stake in the asset back in 2005, forking out GBP505 million. In 2016, it sold just shy of a 17% interest to a unit of the Abu Dhabi Investment Authority. The consortium also has agreed to acquire the 16.7% stake in SGN owned by ADIA.
SSE shares were 1.8% higher at 1,471.00 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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