Canadian consortium of Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners has acquired Britain’s SSE entire 33.3 percent stake in Scotia Gas Networks for $1.70 billion.
Proceeds from the exit of the gas distribution operator will be used to cut net debt in the short term and support investment plans, the London-listed utility said, adding that SSE will offer an update during its interim results in November.
“The capital we are releasing through our disposals programme will help enable us to maximize the delivery of our low-carbon electricity orientated strategy,” said SSE Finance Director Gregor Alexander.
SSE had bought a 50 percent share in SGN in 2005 for $702.30 million, and then sold 16.7 percent stake to unit of the Abu Dhabi Investment Authority (ADIA) in 2016.
SSE said on Monday the the Canadian consortium has also agreed to acquire ADIA’s stake in SGN for an undisclosed amount.
The deal is part of SSE’s disposals programme announced in June last year and is expected to complete within the current financial year, the company said.