Scottish Energy Company SSE has signed an agreement to sell its 16.7% equity stake of Scotia Gas Networks Limited (SGN) to fully owned subsidiaries of the Abu Dhabi Investment Authority.
The deal was finalised at a consideration of £621 million (US$760 million) based on an effective economic date of 1 April.
The transaction is expected to be completed by the end of October.
This divestment follows a review announced by SSE in May.
SSE will retain a 33.3% equity stake in SGN.
After announcing the review, SSE stated that when the divestment is completed it would expect to use the proceeds to return value to its shareholders or invest in creating value for them.
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By GlobalDataThe company plans to set out its intentions with regards to the proceeds in its interim results statement on 9 November.
SSE bought a 50% equity stake in SGN in 2005 for £505 million.
It owns and operates two economically regulated networks that distribute gas to almost six million properties in Scotland and the south of England. In addition, it undertakes other gas-related commercial activities.
With the closure of the sale, and including its remaining equity stake in SGN, SSE will have an ownership interest in five economically regulated energy networks with an estimated total regulated asset value of more than £7 billion. Through continuing investment, this is expected to increase to almost £8.5 billion by March 2018.
