SSE PLC (LSE:SSE) has sold a 25% stake in its electricity transmission network business, SSEN Transmission, for £1.465bn to the Ontario Teachers' Pension Plan Board.
The FTSE 100-listed generator, which recently said the government's 45% windfall tax on electricity generators will force it to review its investments in renewables and "may have to give up" on some green energy plans, said the deal would help unlock significant growth in both the Transmission business and across the wider SSE group.
The disposal is expected to be completed shortly with proceeds to be used to support further growth in the transmission business and further growth opportunities across other core businesses.
SSE said last year that it intended to extend the partnering approach that has been successful in SSE Renewables to its core electricity distribution and transmission network assets through the sale of minority stakes in both businesses with a sale in the electricity distribution business expected in early 2023.
The group will remain the majority shareholder with its finance director, Gregor Alexander, appointed as the chairman of the new board and Rob McDonald continuing as managing director for SSEN Transmission.
To help cover the future long-term funding requirements and the working capital of SSEN Transmission, a new £750mln revolving credit facility has been put in place.
This facility will support SSEN Transmission's ongoing capital expenditure investment programme.
Alexander said: "We are delighted to agree a transaction that will help unlock the full potential of our growing electricity transmission business, which remains core to our strategic direction as a clean energy champion specialising in electricity infrastructure."