ADVERTISEMENT

News

SSE sells 25% stake in transmission network business for £1.5bn

ADVERTISEMENT

SSE has agreed to sell a quarter of its electricity transmission network business to a Canadian pension fund for approximately £1.5 billion.

The British energy company said it would sell a 25% stake in SSEN transmission to the Ontario Teachers’ Pension Plan Board.

The transmission arm operates under its licensed entity, Scottish Hydro Electric Transmission.

SSE told shareholders the deal will “help deliver significant growth” in the transmission business and SSE as a whole.

The company also confirmed that a new £750 million credit facility has been set up to assist with the company’s long-term financing needs.

SSE Director of Finance, Gregor Alexander, will chair the company, with Ontario Teachers proportional representation on the board.

Mr. Alexander said: “We are pleased to have agreed on a transaction that will help us unlock the full potential of our growing power transmission business, positioning us as a clean energy champion, specializing in power infrastructure. important for our strategic direction.

“As we identified last year in our Net Zero Acceleration Program, due to the magnitude of potential growth and associated investment required in SSE’s business, including power grids, engaging minority partners will balance capital allocation and drive further growth support, create a longer service life. term value for all our stakeholders.

“We have a strong long-term partner in Ontario Teachers, with whom we have worked successfully for the past 18 years and while we retain operational control, they will be critical to the future success of SSEN Transmission.”

Charles Thomazy, head of infrastructure and natural resources for EMEA at Ontario Teachers, said: “SSEN Transmission is one of Europe’s fastest growing transmission networks.

Also read  Are NFTs dead? Even in a bear market, a bored monkey sells for nearly $1 million – Decrypt

“Its network spans some of the most challenging terrain in Scotland – from the North Sea to the Highlands – to deliver safe, reliable, renewable energy to demand centers across the UK.”

Source

ADVERTISEMENT

ADVERTISEMENT

Leave a Comment