14th Nov 2007 07:08
Scottish & Southern Energy PLC14 November 2007 SCOTTISH AND SOUTHERN ENERGY PLC ACQUISITION OF SLOUGH HEAT AND POWER LTD Scottish and Southern Energy plc ("SSE") has entered into an agreement withSEGRO plc to acquire its shares in Slough Heat and Power Ltd, an integratedenergy business, for a total cash consideration of £49.25m. The agreement issubject to a condition precedent, which once satisfied, should result inownership transferring to SSE by the end of December 2007. The principal assets of Slough Heat and Power comprise: a combined heat andpower (CHP) plant, with potential generating capacity of 101MW and a currentgenerating capacity of around 80MW, which produces electricity plus heat whichis distributed via a steam and water distribution network; around 100km ofunderground electricity network plus substations; and around 3,000 industrial,commercial and domestic energy customers. The CHP plant is the UK's largest dedicated biomass energy facility and its mainsources of fuel are wood chips, biomass and waste paper, although gas, gas oiland heavy fuel oil can also be used. The site has its own fibre fuel processingplant, which takes delivery of waste paper products and converts these intouseable fuel. Part of the plant is contracted under the Non Fossil Fuel Obligation and part ofit produces over 200GWh of output qualifying for Renewable ObligationCertificates (ROCs), which is equivalent to around 90MW of wind generation. Italso comes with an allocation of carbon emissions allowances for Phase II of theEU Emissions Trading Scheme. Almost all of these assets are located on the Slough Trading Estate and SloughHeat and Power will continue to offer tenants on the Estate an integrated energysolution. The site is supported by a connection to SSE's Southern Electricpower distribution network. Around 140 employees will join SSE upon completion. Ian Marchant, Chief Executive of SSE, said: "I am delighted that Slough Heat and Power is becoming part of SSE. It is animportant business, situated right in the heart of one of our traditionaloperating areas. With its mix of assets and customers, it is a ready-made fitfor SSE's business model, and over time we expect to secure efficiencies andsynergies which will create further value. Its sustainable energy credentialsare particularly appealing, and we are also looking forward to working with theteam at Slough. "SSE's policy on acquisitions is that assets must complement existing businessesand be priced in a way that is consistent with value creation and with ourfinancial priniciples generally. Slough Heat and Power fits the bill." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSESegro