SSE agrees to dispose of 16.7% stake in SGN

SSE has agreed to sell a 16.7% equity stake in Scotia Gas Networks Ltd to wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) for a headline consideration of £621m.

The transaction is expected to be completed by the end of this month, with the consideration being settled in cash. The sale follows a review announced by SSE in May 2016. SSE will retain a 33.3% equity stake in SGN.

When it announced the review, SSE said that should a sale be completed it would expect to use the proceeds to return value to its shareholders or to invest to create value for shareholders, should there be the right opportunity.

SSE will set out its intentions with regard to the proceeds in its interim results statement on 9 November 2016.