28th Jan 2005 15:20
Scottish & Southern Energy PLC28 January 2005 SCOTTISH AND SOUTHERN ENERGY PLC INVESTMENT IN GAS DISTRIBUTION NETWORKS ON TRACK The announcements by energy regulator Ofgem on 21 January and by the Departmentof Trade and Industry yesterday (27 January) confirm that the consortium inwhich Scottish and Southern Energy plc ("SSE") holds fifty percent of the equityis on course to complete the acquisition of the Scotland and the South ofEngland gas distribution networks from National Grid Transco later this year.The consortium's financial arrangements, as set out on 31 August 2004, includedfunding via a financial instrument of £42m held by SSE's partners, BorealisInfrastructure ("Borealis") and Ontario Teachers' Pension Plan ("Teachers").Under the consortium's agreement, SSE retained the right to 'buy out' fifty percent of the financial instrument. Following a review of the structure of the instrument, and of its potentialbenefits, SSE has decided to exercise this right. In effect, this will lead tothe financial instrument being cancelled and means that SSE will now make aninvestment of £540m in cash to acquire its fifty per cent interest in the twogas networks. SSE expects its additional investment to enhance its overallreturn from the acquisition. Ian Marchant, Chief Executive, said: "I am pleased that our partnership withBorealis and Teachers is continuing to develop in a positive direction and hasallowed us to make this sensible adjustment to the financial arrangements. Ourconsortium continues to be very focused on the detailed work that needs to bedone over the next few months to ensure that the forthcoming acquisition goessmoothly and delivers the benefits which we have identified." Enquries to:Alan Young, Director of Corporate Communications0870 900 0410Denis Kerby, Investor and Media Relations Manager0870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE