SSE PLC (LON:SSE) has completed the sale of its retail arm to Ovo Energy for £500mln.
The proceeds, £400mln in cash and a £100mln loan note, will be used to cut debt.
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The loan note will be issued by a member of OVO, the company said, and will be due in 2029 with 13.25% annual interest rate.
All 8,000 employees will be transferred while the SSE brand will be operated by OVO under license for a period to ensure a careful migration.
“The sale is in line with our clear strategy, centred on developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core,” said SSE’s chief executive Alistair Phillips-Davies in a release.
“SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the UK's vital net zero commitment in the years to come.”