SSE plans to sell its 33 per cent stake in local gas network company Scotland Gas Networks as part of its plan to focus on renewable generation.
SSE, which owns Airtricity in Ireland, said in February it had appointed banks to review options for a sale and is "now progressing options for divestment of all its equity stake in SGN," according to a statement on Tuesday.
The disposal follows a deal by National Grid to sell its majority stake in its gas grid business later this year, as the fossil fuel comes under increasing scrutiny from investors and activists.
The company will continue to own and operate its electricity grid business Scottish and Southern Electricity Networks. SSE is building the world’s biggest offshore wind farm at Dogger bank and has a £2 billion ($2.8 billion) divestment plan by autumn 2021.
SGN is valued at £2.1 billion taking the equity value of SSE’s stake to about £900 million, according to Barclays Bank.
SSE expects to update the market further on its approach and timings at its results presentation on May 26th, it said. – Bloomberg