logo
  

SSE To Sell Entire 33.3% Stake In Scotia Gas Networks For £1.225 Bln Cash

Renewable electricity company SSE plc (SSE.L) Monday said it has agreed to sell its entire 33.3 percent stake in gas distribution operator Scotia Gas Networks Ltd or SGN for 1.225 billion pounds in cash.

The stake is being sold to a consortium comprising existing SGN shareholder Ontario Teachers' Pension Plan Board and Brookfield Super-Core Infrastructure Partners.

SGN includes Scotland Gas Networks plc and Southern Gas Networks plc, two of the eight regulated gas distribution networks in England, Wales and Scotland, in addition to SGN Natural Gas Ltd, which provides gas to customers in the west of Northern Ireland as well as other non-regulated ancillary businesses.

The transaction is based on an effective economic date of March 31, 2021. It is expected to complete within the current financial year and is conditional on certain regulatory approvals.

SSE initially acquired a 50 percent equity share in SGN in 2005 for a total of 505 million pounds, but later sold 16.7 percent stake to Abu Dhabi Investment Authority or ADIA;s unit in 2016.

The Consortium has also agreed to acquire the 16.7 percent stake in SGN owned by ADIA.

In total, Ontario Teachers' will acquire an additional 12.5 percent of SGN and Brookfield will acquire a 37.5 percent stake in SGN. StepStone Clients are participating in both the Brookfield and Ontario Teachers' investments.

SSE noted that the latest sale will conclude its 2 billion pounds plus disposals programme announced in June 2020, with total proceeds amounting to over 2.7 billion pounds.

The disposal proceeds will reduce net debt in the short term and will help support the delivery of SSE's capital investment plans.

SSE will provide an update on these plans at its interim results in November.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Privately-held biotechnology company On Target Laboratories, Inc. announce that the U.S. Food and Drug Administration or FDA, has approved Cytalux (pafolacianine) for adult patients with ovarian cancer as an adjunct for intraoperative identification of malignant lesions. Cytalux is the first targeted fluorescent imaging agent that illuminates ovarian cancer intraoperatively. The Federal Trade Commission or FTC has ordered Walmart, Amazon, Kroger and certain other large wholesalers and suppliers to provide information to help it study causes of supply chain disruptions. The agency has launched an inquiry to find the reasons for empty shelves and exorbitant prices. Along with Walmart, Amazon.com, and Kroger, the order has been sent to C&S Wholesale Grocers, Associated.. Covid vaccine maker Moderna Inc.'s Chief Executive Stéphane Bancel has predicted that existing COVID-19 vaccines will be much less effective against Omicron than earlier strains, according to the Financial Times.
Follow RTT