SSE, which stands for Scottish and Southern Energy; Scotland’s top energy provider, announced this Monday it is selling its entire stake in Scotia Gas Networks (SGN) for $1,70 million dollars; the energy producer will focus more on renewable energy projects.
Firstly, the stake sold is for around 33,3%. SGN is the top gas supplier for the England regions of Wales; also, Scotland, and the western and Northern Ireland. The purchaser will be a Canadian consortium formed by Ontario Teachers’ Pension Plan Board and Brookfield Infrastructure Partners.
Secondly, the sale comes as SSE has set out plans to heavily invest in low carbon energy infrastructure over the next five years; the company also plans to increase its renewable electricity output by 2030, as it transits to a net-zero future.
Thirdly, as Reuters report, back in May, the company announced it was on track to invest $7.5 billion pounds in low-carbon projects up to 2025. In fact, the SGN sale, follows a $2 billion disposal program by SSE that the company expects to complete by the end of the fiscal year. Such divestment would help the company funs its low carbon projects.
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SSE to also sell AIDA stake; undisclosed amount
Moreover, in such regards, SSE Finance Director Gregor Alexander, said. “The capital we are releasing through our disposals program will help enable us to maximize the delivery of our low-carbon electricity orientated strategy.”
In addition, the proceeds from the sale will cut the company’s net debt in the short term; and also, support investment plans, the executive from the London-listed utility said; adding that it would provide an update with its interim results in November.
Furthermore, after the news broke, SSE’s shares rose 1,8% in the morning trade. Also, in Monday morning, SEE said that the Canadian consortium has also agreed to acquire the ADIA stake; for an undisclosed amount.
Finally, Morgan Stanley and Credit Suisse acted as financial advisers to SSE and Nomura acted as financial adviser to ADIA. Evercore acted as financial adviser to Ontario Teachers’.
