3rd Aug 2007 12:03
Scottish & Southern Energy PLC03 August 2007 SCOTTISH AND SOUTHERN ENERGY PLC DISPOSAL OF TELECOMS SITES ASSETS Scottish and Southern Energy plc ("SSE") has entered into an agreement with TheWireless Infrastructure Company Limited, a wholly owned subsidiary of WirelessInfrastructure Group Limited ("WIG"), under which it has sold its telecoms sitesassets from its telecoms business, SSE Telecommunications Ltd ("SSET"), for atotal consideration of £79m, excluding working capital. The transaction involves over 220 tower sites which mobile phone operators, theemergency services and local authorities use to provide mobile communicationsand data services. SSET is retaining its network of fibre optic assets acrossGreat Britain and will continue to provide telecoms services to both commercialand public sector customers under the Neos Networks brand. The assets which have been disposed of contributed approximately 0.3% of SSE'sprofit(1) in 2006/07. Ian Marchant, Chief Executive of SSE, said: "At our preliminary results we set out our intention to complete the re-focusingof our telecoms business on network-related services, as opposed to site-relatedservices, and the sale of these assets is in line with that. The outcome of thiscompetitive process has allowed us to realise excellent value from a non-corepart of our business." Scott Coates, Director of Wireless Infrastructure Group, said: "The acquisition of SSE's telecom site assets is highly strategic for WIG andincreases our UK tower portfolio to in excess of 1,000 sites. The transactionextends WIG's geographic footprint and firmly establishes us as the leadingindependent tower company in the UK. Key to this transaction was the ongoing,long-term relationship with SSE to supply services and develop new sites." Adrian Pike, Group Managing Director of SSE Telecoms, said: "The disposal of these assets will allow us to concentrate on our core businessof providing networking services to other telecoms providers, companies andpublic sector organisations. "Neos Networks, the wholly owned subsidiary of SSE Telecom, has enjoyedexcellent growth over the last three years. Our innovation, competitive pricingand quality of service have helped to deliver a threefold increase in operatingprofit. Extensions to our fibre optic network and continuous focus on customerservice will enable us to achieve additional growth in the future. As part of the sale we have entered into a long term contract for the provisionof site services to support our core business. WIG's extensive experience in thetower sector was an important factor in determining the final purchaser." Notes to Editors: (1) Earnings before interest, taxes, depreciation and amortisation Media enquiries to: Scottish and Southern Energy plc Justyn Smith, Head of Media Relations - 0845 0760 530 Wireless Infrasstructure Group Ltd Scott Coates, Director - 0131 523 5696-------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE