SSE shares up as it completes £500m Ovo retail sale

Shares of Perth-based energy giant SSE plc rose 2% on Wednesday after it finally completed the sale of SSE Energy Services, its household energy business in Great Britain, to Ovo Energy for an enterprise value of £500 million.

SSE shares rose 28p to around £14.86 to give the firm a current stock market value of around £15 billion.

All of SSE Energy Services’ 8,000 employees will transfer to Ovo Energy.

Certain defined benefits pension liabilities of SSE Energy Services, relating to 140 employees who have chosen to transfer their benefits, will transfer fully funded from SSE pension schemes to a new SSE Energy Services pension scheme.

“The net proceeds of the transaction will be used to reduce SSE’s net debt,” said SSE.

“In the period since SSE and Ovo agreed the sale in September 2019, the necessary regulatory approvals have been secured and joint integration planning has been undertaken to ensure a smooth transition for customers and employees.”

SSE CEO Alistair Phillips-Davies said: “We are very pleased to be completing this transaction, which we firmly believe is the best outcome for the business, its customers and its employees.

“The sale is in line with our clear strategy, centred on developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core.

“SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the UK’s vital net zero commitment in the years to come.”

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