British energy company SSE Plc (OTC: SSEZY) said it plans to sell a 25% minority stake in its electricity transmission network business, SSEN Transmission - to Ontario Teachers’ Pension Plan Board for £1.456 billion.
The transaction is expected to fuel growth in both the Transmission business and across the wider SSE Group.
The stake sale process for SSE’s electricity distribution business is expected to commence in early 2023.
As of March 31, 2022, SSEN Transmission had a RAV of £4.16 billion and net debt and debt-like items of £2.49 billion, including £780 million of SSE shareholder loans.
Ontario Teachers’ will be proportionately represented on SSEN Transmission’s Board of Directors, with SSE as the majority shareholder retaining control in relation to operating and managing the business.
"Our investments will also be key to securing the UK’s future energy independence through enabling the deployment of homegrown, affordable, low carbon power,” said Rob McDonald, Managing Director of SSEN Transmission.
Price Action: SSEZY shares closed higher by 1.22% at $20.74 on Wednesday.
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