SSE agrees to sell its stake in Scotia Gas Networks for £1.225 billion
The energy company SSE has agreed to sell its stake in gas distribution operator Scotia Gas Networks Ltd for £1.225 billion.
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.
In total, Brookfield will acquire a 37.5% stake in SGN and Ontario Teachers’ will acquire an additional 12.5% of SGN. StepStone Clients will participate in both the Brookfield and Ontario Teachers’ investments. which means following completion of both transactions, SGN’s direct shareholders will comprise, Brookfield (37.5%), OMERS Infrastructure (25% unchanged) and Ontario Teachers’ (37.5%).
Morgan Stanley and Credit Suisse acted as financial advisers and CMS Cameron McKenna Nabarro Olswang LLP as legal advisers to SSE.
The Finance Director of SSE, Gregor Alexander, said:
“SGN has been a hugely successful investment for SSE during the past 16 years. It is a strong business delivering consistently for customers and will have a key role to play in the future development of the hydrogen economy. However, it has become purely a financial investment for SSE as we have sharpened our focus on our low-carbon electricity core, and it is therefore the right time for SGN to continue to thrive under new ownership.