SSE sells stake in network business

SSE has sold a quarter of its electricity transmission business to a Canadian pension fund for £1.5bn.

The renewable power giant will offload a 25pc stake in the business, which runs electricity networks in Scotland and parts of England, to the ontario Teachers’ Pension Plan Board.

In the year to April, SSEN Transmission made £330m profit. SSE said the deal will ‘unlock significant growth’ in the business and across the group. The funds will be invested in its renewables arm, which develops infrastructure such as wind farms.

It is part of a strategy to hive off its renewables business, after activist investor Elliott attacked SSE, calling for sweeping changes at the FTSE 100 firm.

Finance director Gregor Alexander said minority partners such as the pension fund will be ‘critical’. SSE shares fell 0.4pc, or 7.5p, to 1725p. It also plans to sell a 25pc stake in its two electricity distribution networks, in a process starting next year.