By Joe Hoppe

 

SSE PLC said Friday that it will sell a 25% stake in its electricity transmission network business SSEN Transmission to Ontario Teachers' Pension Plan Board for 1.47 billion pounds ($1.78 billion).

The London-listed energy company said the sale of the stake--which operates under its licensed entity, Scottish Hydro Electric Transmission PLC--will help unlock significant growth in both the transmission business and across the wider group, and is expected to complete shortly.

As of March 31, SSEN Transmission had a regulatory asset value of GBP4.16 billion and net debt and debt-like items of GBP2.49 billion.

The company said the proceeds from the stake sale will support the significant growth seen in SSEN and further growth opportunities across SSE's other core businesses, while ensuring an attractive balance of capital allocation.

SSE will remain majority shareholder and retain control in operation and management, with Ontario Teachers' to be proportionally represented on SSEN's own board of directors. SSE's Finance Director Gregor Alexander will chair this new board, and SSEN Managing Director Rob McDonald will retain his position.

"With significant growth forecast in transmission, bringing in Ontario Teachers' as a minority stake partner will help fund our ambitious investment plans as we continue to deliver a network for net zero emissions across the north of Scotland," Mr. McDonald said.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

November 25, 2022 02:35 ET (07:35 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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