SSE PLC (LSE:SSE) has agreed to sell its 33.3% stake in gas distributor Scotia Gas Networks Ltd (SGN) for a cash sum of £1.26bn.
A consortium comprising existing SGN shareholder Ontario Teachers' Pension Plan Board (Ontario Teachers') and Brookfield Super-Core Infrastructure Partners (Brookfield) will acquire the stake.
SSE initially acquired a 50% equity share in SGN in 2005 for a total of £505mln, before selling a 16.7% stake to the Abu Dhabi Investment Authority in 2016.
The consortium has also agreed to acquire the 16.7% stake in SGN owned by ADIA.
SGN includes Scotland Gas Networks and Southern Gas Networks, two of the eight regulated gas distribution networks in England, Wales and Scotland.
SSE added that this deal marks the end of SSE's £2bn plus disposals programme announced in June 2020, with total proceeds amounting to over £2.7bn.
Gregor Alexander, SSE’s finance director, added: "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.”