SSE has agreed to sell its entire 33.3% stake in its gas supply pipeline network operator Scotia Gas Networks Ltd (SGN) for £1.2 billion (€1.4 billion).
It will be sold to a consortium comprising the Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners.
SSE initially acquired a 50% equity share in SGN in 2005 for a total of £505 million (€593 million), before selling a 16.7% stake to a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) in 2016.
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.
SGN is focused on sustainability, having committed to ensuring all its business operations are net zero by 2045, and is taking a leadership role in supporting the transition to a hydrogen economy.
Gregor Alexander, Finance Director of SSE, said: “SGN has been a hugely successful investment for SSE during the past 16 years. It is a strong business delivering consistently for customers and will have a key role to play in the future development of the hydrogen economy.
“However, it has become purely a financial investment for SSE as we have sharpened our focus on our low-carbon electricity core, and it is therefore the right time for SGN to continue to thrive under new ownership.”
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