Perth-based utility SSE has netted a profit of £116 million on the sale of a part of its Scotia Gas Networks business to the Abu Dhabi Investment Authority.
After being paid £621 million in cash for the 16.7% stake, SSE will still own a 33.3% share in SGN – the gas distribution company that manages and provides natural and green gas to about six million homes and businesses across Scotland and southern England.
When it announced its review of SGN, 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 next month.
Since its acquisition in 2005 SGN has returned dividend payments and other distributions to SSE totalling over £750 million and SSE believes that SGN is in a good position to build on this track record in the future.
Alistair Phillips-Davies, SSE Chief Executive, said: “Over the last decade, SGN has become a leading gas distribution business for the benefit of customers and investors alike.
“The sale of a 16.7% stake confirms SSE’s ability to deliver value for shareholders through focused, timely disposals while at the same time retaining a diverse range of regulated and unregulated businesses in order to support long term dividend growth.”