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SSE PLC on Wednesday said it completed the sale of a 25% minority stake in its SSEN Transmission unit for £1.46 billion.
The Perth, Scotland-based electricity utility sold the unit to pension fund company Ontario Teachers’ Pension Plan Board.
SSEN Transmission is SSE’s electricity transmission network business which operates under its licenced entity, Scottish Hydro Electric Transmission PLC.
SSE said proceeds from the sale will support SSEN Transmission’s growth, and further growth opportunities across SSE’s other core businesses. It added that the sale will ensure an ‘attractive’ balance of capital allocation across the group.
The transaction forms part of SSE’s strategy to extend its partnering approach to its core electricity transmission and distribution network assets, through the sale of minority stakes in both businesses, as part of SSE’s Net Zero Acceleration Programme.
SSE a year ago said it planned to sell 25% stakes in each of its SSEN Transmission and SSEN Distribution arms. The sales process for a stake in the electricity distribution business is expected begin in early 2023.
SSE shares were up 2.5% to 1,717.50 pence on Wednesday afternoon in London.
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