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(Alliance News) - SSE PLC on Friday said it has reached a deal to offload a 25% holding in its SSEN Transmission unit, roughly a year after the energy company announced it intended to sell a stake.
The Perth, Scotland-based electricity utility said the Ontario Teachers' Pension Plan Board will buy into the unit. SSE expects GBP1.47 billion in proceeds from the sale of the stake in the electricity transmission network business.
SSE said the transmission business posted a pretax profit of GBP329.8 million in the financial year that ended on March 31. Adjusted operating profit climbed 72% to GBP380.9 million from GBP220.9 million year-on-year. Over the year, its regulatory asset value grew 15% to GBP4.16 billion from GBP3.63 billion. As of September 30, the unit had gross assets of GBP4.72 billion and net assets of GBP2.24 billion.
"This successful transaction reflects both the current value and significant growth potential of SSEN Transmission as one of Europe's fastest growing transmission networks. SSE continues to believe SSEN Transmission has a central role to play in meeting net zero and bolstering the UK's energy security by unlocking the vast renewable resources in the north of Scotland and transporting that homegrown low carbon power to demand centres further south," SSE said.
"The proceeds released through this stake sale will support the significant growth SSE continues to see in SSEN Transmission and further growth opportunities across SSE's other core businesses, while ensuring an attractive balance of capital allocation across the group."
SSE a year ago said it planned to sell 25% stakes in each of its SSEN Transmission and SSEN Distribution arms. The process to sell a stake in the electricity distribution business is expected begin "in early 2023".
SSE shares were up 0.5% to 1,742.50 pence each on Friday morning in London.
By Tom Budszus; tombudszus@alliancenews.com
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