SSE agrees to sell four wind farms

Energy group SSE said Wednesday that it has agreed a deal under which it will sell four wind farms, which have a total generation capacity of 79.5MW, to a new fund managed by Greencoat Capital, which plans to list on the London Stock Exchange.

Energy group SSE said Wednesday that it has agreed a deal under which it will sell four wind farms, which have a total generation capacity of 79.5MW, to a new fund managed by Greencoat Capital, which plans to list on the London Stock Exchange.

The farms will be sold for a total cash consideration of £140m, and SSE will invest up to £43m of the consideration into shares in the new fund. This will be reduced if the fund is over-subscribed.

As part of the deal, SSE has agreed to enter into power purchase agreements (PPA) for three of the wind farms totaling 43.5MW (the fourth wind farm already has a PPA with a third party) and will continue to have the operation and maintenance contract for all four wind farms.

Gregor Alexander, Finance Director of SSE, said: "This agreement represents the latest step in a programme of acquisitions and disposals to optimise our wind farm portfolio. Fundamentally, SSE owns generation capacity to meet the electricity needs of its own customers, which is why we were pleased to be able to establish new PPAs before disposing of these assets.

"The proceeds from these disposals will support our investment in new renewable assets in the coming financial year and, in line with our commitment to financial discipline, represent an excellent example of SSE creating ongoing value from its investment pipeline while improving the liquidity of the market for investment in new renewable developments."

The sale of the wind farms is dependent on Greencoat Capital successfully listing on the London Stock Exchange and raising the required capital. It is expected that this process will be completed by the end of March, at which stage completion of the sale will also take place.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021