SSE has completed the sale of its entire 33.3% stake in gas distribution operator Scotia Gas Networks Ltd (SGN) to a consortium comprising existing SGN shareholder Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and Brookfield Super-Core Infrastructure Partners (Brookfield).
With the satisfaction of all necessary regulatory approvals at the start of March, the transaction has now completed for a final consideration of £1,286m in cash.
Following the sale of SGN and prior sales of SSE’s GB domestic energy supply business, and its gas production business, the Group’s strategic focus is now firmly on clean electricity infrastructure. Its core businesses are renewables and regulated electricity networks – businesses which have strong, net zero-linked growth potential based on government policy alignment, and common capabilities in the development, construction, operation and financing of world-class, highly technical electricity assets. These core businesses – together with strategically-aligned thermal, customer and trading businesses – provide a compelling ESG-linked growth investment opportunity; an attractive mix of economically-regulated and market-based income streams; and valuable linkages with each other.
SSE is focused on the delivery of its Net Zero Acceleration Programme which includes fully funded £12.5bn strategic capital investment plans to 2026 alongside ambitious 2031 targets, aligned with net zero and 1.5C science-based carbon targets. As well as generating strong shareholder returns and supporting an attractive dividend, the plans create value for all SSE’s stakeholders with the Group enabling delivery of over 25% of the UK’s 2030 40GW offshore wind target and over 20% of upcoming UK electricity networks investment, while deploying flexibility solutions and exporting its renewables capabilities overseas.
The disposal proceeds will reduce net debt in the short term and will help support the delivery of SSE’s Net Zero Acceleration Programme.
"SGN has been a hugely successful investment for SSE and is a strong business, but it had become purely a financial investment for SSE and we wish the team every success in the future. For SSE the sale has sharpened our focus on our low-carbon electricity core, leaving us fully focused on delivering our Net Zero Acceleration Programme. We are investing £7m a day across the UK, Ireland and carefully selected international geographies, enabling the electricity infrastructure needed for net zero and reduced dependence on imported fossil fuels"
Gregor Alexander, Finance Director