StockMarketWire.com - Power utility SSE said it had agreed to sell its 33.3% stake in UK gas distribution operator Scotia Gas Networks for £1.23 billion.

The stake was being sold to a consortium comprising existing Scotia Gas Networks shareholder Ontario Teachers' Pension Plan Board and Brookfield Super-Core Infrastructure Partners.

The deal will concludes SSE's £2 billion-plus disposals programme announced in June 2020, with total proceeds amounting to over £2.7 billion.

Scotia Gas Networks included Scotland Gas Networks and Southern Gas Networks, two of the eight regulated gas distribution networks in England, Wales and Scotland.

It also included SGN Natural Gas, which provided gas to customers in the west of Northern Ireland as well as other non-regulated ancillary businesses. SSE initially acquired a 50% equity stake in 2005 for £505 million, before selling a 16.7% stake to the Abu Dhabi Investment Authority (ADIA) in 2016.

The consortium also had agreed to acquire the 16.7% stake in Scotia Gas Networks owned by ADIA.

SSE is selling non-core assets to concentrate on its low-carbon electricity businesses and the transition to net zero.

'The disposal proceeds will reduce net debt in the short term and will help support the delivery of SSE's capital investment plans,' it said.

"As indicated in May, SSE will provide an update on these plans at its interim results in November.'


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