SSE to Sell Stake in Scotia Gas Networks
SSE has agreed to sell its entire 33.3% stake in gas distribution operator Scotia Gas Networks Ltd to a consortium comprising existing SGN shareholder Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners The transaction is based on an effective economic date of 31 March 2021 and is for a consideration of GBP 1,225 million in cash. It is expected to complete within the current financial year and is conditional on certain regulatory approvals.
SSE initially acquired a 50% equity share in SGN in 2005 for a total of GBP 505 million, before selling a 16.7% stake to a wholly owned subsidiary of the Abu Dhabi Investment Authority in 2016. The Consortium has also agreed to acquire the 16.7% stake in SGN owned by ADIA.
SGN includes Scotland Gas Networks plc and Southern Gas Networks plc, two of the eight regulated gas distribution networks in England, Wales and Scotland, in addition to SGN Natural Gas Ltd, which provides gas to customers in the west of Northern Ireland as well as other non-regulated ancillary businesses. SGN is focused on sustainability, having committed to ensuring all its business operations are net zero by 2045, and is taking a leadership role in supporting the transition to a hydrogen economy.