Perth power giant SSE strikes £1.5bn deal
Scottish energy giant SSE has reached agreement to sell a 25 per cent stake in its electricity transmission network business in a near-£1.5 billion deal.
The Perth-headquartered firm said the deal with Ontario Teachers’ Pension Plan Board would help unlock“significant” growth in bothss en transmission and across the wider SSE Group. the transaction follows the company’s announcement last november of its intention to extend the partnering approach that has been successful in SSE Renewables to its core electricity distribution and transmissionnetwork assets through the sale of minority stakes.
SSE said the transmission business had a central role to play in meeting net zero goals and bolstering the UK’S energy security by unlocking “vast” renewable resources in the north of Scotland and transporting that “homegrown” low carbon power further south. The transaction is based on an effective economic date of March 31, 2022, and total cash proceeds of £1.465bn for the 25 per cent stake are expected at completion.
Gregor Alexander, finance director of SSE, said: “As we set out on our net zero acceleration programme last year, due to the scale of potential growth and the associated investment required across SSE’S businesses, including in electricity networks, bringing in minority partners will balance capital allocation and support further growth, creating greater long term value for all our stakeholders.
"In Ontario Teachers we have a strong long-term partner who we have worked with successfully over the past 18 years and, whilst we will retain operational control, they will be critical to SSEN Transmission’s ongoing future success.”