SSE To Complete SSE Energy Services Sale To OVO For GBP500 Million

(Alliance News) - SSE PLC said it will complete on Wednesday the sale of its UK household energy ...

Alliance News 15 January, 2020 | 8:01AM
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(Alliance News) - SSE PLC said it will complete on Wednesday the sale of its UK household energy and services business SSE Energy Services Group Ltd to OVO Energy Ltd for GBP500 million.

The FTSE 100-listed utility company said the proceeds of the transaction will be used to reduce its debt.

The completion of transaction will enable SSE to strengthen its focus on delivering the low-carbon infrastructure needed to help the UK reach net zero emissions, the company said.

SSE agreed to sell its household energy services business to OVO Energy in September last year, for GBP400 million in cash plus GBP100 million worth of loan notes.

OVO had been named by SSE as a potential buyer in August. OVO's purchase will make it one of the largest energy suppliers in the UK, just a decade after its founding.

At the end of October, UK competition watchdog had started a probe in order to find out whether or not the sale of the SSE Energy Services business could lessen competition. However, in December the Competition & Markets Authority announced its decision not to conduct an in-depth assessment of the deal.

SSE Chief Executive Alistair Phillips-Davies said: "We are very pleased to be completing this transaction, which we firmly believe is the best outcome for the business, its customers and its employees."

"SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the UK's vital net zero commitment in the years to come," Phillips-Davies said.

By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
SSE PLC 1,280.00 GBX 2.32

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