SSE plc, the Perth-based electricity infrastructure giant, said on Wednesday it has completed the sale of a 25% minority stake in its electricity transmission network business SSEN Transmission to Ontario Teachers’ Pension Plan Board for £1.465 billion in cash.
SSEN Transmission operates under its licenced entity Scottish Hydro Electric Transmission plc.
“The proceeds will support the significant growth SSE continues to see in SSEN Transmission and further growth opportunities across SSE’s other core businesses, while ensuring an attractive balance of capital allocation across the group,” said SSE.
“The sale of a minority stake will allow SSE as the majority shareholder to retain control in relation to operating and managing the business, with Ontario Teachers’ to be proportionately represented on SSEN Transmission’s board of directors.
“The successful transaction follows SSE’s strategy to extend the partnering approach that has been successful in SSE Renewables to its core electricity transmission and distribution network assets through the sale of minority stakes in both businesses as part of SSE’s fully funded Net Zero Acceleration Programme.
“The sale process for a stake in SSE’s electricity distribution business is expected to commence in early 2023.”
Morgan Stanley and Rothschild and Co acted as joint financial advisors and Freshfields Bruckhaus Deringer LLP acted as legal advisers to SSE on this transaction.
Ontario Teachers’ was advised by Evercore as sole financial adviser and by Linklaters LLP as legal adviser.