SSE sells stakes in two Scottish wind farms to Greencoat for £635m

Writer, Stock Market Wire
Friday, February 1, 2019 - 07:35

Power utility SSE said it had agreed sell a 49.9% stake in its Stronelairg and Dunmaglass wind farms in Scotland to Greencoat UK Wind and a partner for £635m.

Greencoat, meanwhile, said it would raise up to £131m to help fund the deal by issuing new shares in the company at 127p each.

The purchase was being made by Greencoat in partnership with a 'major UK pension fund' whose investment was managed by Greencoat Capital.

The stakes equated to 160.6 megawatts and SSE would continue to operate both assets.

SSE said it would use up to £200m of the proceeds to fund a discretionary share buyback, with the remaining proceeds used to reduce debt.

'The sale is in line with SSE's strategy to create value from development and operation, as well as ownership, of assets,' SSE renewables head Jim Smith said.