SSE plc and innogy SE have appointed Gordon Boyd as chief financial officer designate for the new independent British energy supply and services company they have agreed to form, subject to shareholder and regulatory approvals.
Perth-based energy giant SSE said last November it agreed to demerge its household energy and services business in Great Britain with Innogy subsidiary Npower to form a new listed UK company.
The combination, if allowed, would create the UK’s second largest energy supplier.
The UK’s Competition and Markets Authority (CMA) has since referred the proposed merger for an in-depth investigation “after finding competition concerns.”
Boyd is the second appointment to the board of the new company — alongside Katie Bickerstaffe who was confirmed as chief executive designate in April.
“Gordon will take up his new role on 4 July 2018 and will play a key role in the work being done to plan and prepare for the formation and listing of the new company, which remains on course to take place in the last quarter of 2018 or first quarter of 2019,” said SSE.
“Like Katie, Gordon will have no involvement in the leadership or management of either existing organisation.
“Gordon has significant experience both in the energy sector and in major listed companies, acquired over more than 30 years.
“He originally joined the energy sector in 1989 and went on to hold a variety of senior finance leadership positions at utilities including British Energy and EDF Energy, as well as overseeing the initial public offerings of both Drax and Infinis.”
SSE CEO Alistair Phillips-Davies said: “This appointment represents another important milestone on the journey to establishing a new, independent player in the British energy supply and services market.
“Gordon brings to the role a wealth of highly relevant experience, which will be invaluable as we prepare to bring the new company to market and beyond.
“We continue to believe that the combination of the two companies as an independent player can deliver real benefits to customers and the wider energy market and Gordon’s appointment further signals the ongoing commitment from both parties to progressing the transaction and giving the new company the best possible foundation for success.”
Martin Herrman, Chief Operating Officer Retail at innogy SE, said: “We remain on schedule with our plans for a new British retail energy company which combines the best from both companies to meet evolving customer expectations.
“Following the appointment of Katie Bickerstaffe as CEO Designate in April, the selection of Gordon Boyd as CFO Designate is a further important step forward in establishing an independent player in the British energy supply and services market.
“Gordon will bring vast expertise and experience in both the energy sector and in major listed companies to the board of the new company.”
Boyd said: “This is an exciting time to be planning the formation and listing of a major new player in the energy and services market and I’m delighted to join the new leadership team.
“The new company presents a unique opportunity to apply best practice from both companies whilst becoming more efficient, ultimately to the benefit of both customers and shareholders.”
The combined company will be listed on the premium segment of the London Stock Exchange.
innogy will hold a minority stake of 34.4 % in the combined retail company and SSE will demerge its stake of 65.65% to its shareholders on completion of the transaction.
The transaction is still subject to the approval of SSE’s shareholders, as well as approval by the relevant authorities.
“Completion of the transaction and the listing of the new retail energy company are expected to occur in the last quarter of 2018 or the first quarter of 2019,” said SSE.