SSE has completed the sale of a 25% minority stake in its electricity transmission network business, SSEN Transmission – which operates under its licensed entity, Scottish Hydro Electric Transmission – to Ontario Teachers’ Pension Plan Board (Ontario Teachers’)
The total cash proceeds of £1.465bn (€1.68bn) will support the significant growth SSE continues to see in SSEN Transmission and further growth opportunities across SSE’s other core businesses.
It will also ensure an attractive balance of capital allocation across the Group.
The sale of a minority stake will allow SSE as the majority shareholder to retain control in relation to operating and managing the business, with Ontario Teachers’ to be proportionately represented on SSEN Transmission’s board of directors.
The successful transaction follows SSE’s strategy to extend the 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 fully funded Net Zero Acceleration Programme.
The sale process for a stake in SSE’s electricity distribution business is expected to commence in early 2023.
Morgan Stanley and Rothschild and Co acted as joint financial advisors and Freshfields Bruckhaus Deringer acted as legal advisers to SSE on this transaction.
Ontario Teachers’ was advised by Evercore as sole financial adviser and by Linklaters LLP as legal adviser.