SSEZY SSE PLC (PK)

By Razak Musah Baba

LONDON--U.K. utility SSE PLC (SSE.LN) has signed agreements to sell 49.9% of its stake in Clyde Wind Farm to Greencoat U.K. Wind PLC (UKW.LN) and GMPF & LPFA Infrastructure LLP (GLIL) for a headline consideration 355 million pounds ($510.4 million).

SSE said Monday that the sale is part of its disposals plan announced in 2014. Following the farm's extension--currently under construction with completion expected in June 2017--the equity stake jointly owned by UKW and GLIL will be diluted to 30% with SSE retaining 70%, it said.

In addition to completing the construction of the extension, SSE will provide long-term management services for the day-to-day operations.

In March 2014, SSE announced a disposal program with intended proceeds and debt reduction of GBP1 billion from the sale of non-core assets and businesses and the sale of existing or in-development onshore wind farms.

"The sale represents another significant step in a program of disposals to recycle capital and optimize our wind farm pipeline. The proceeds from this disposal will help to support our future investments in a balanced range of energy assets," Martin Pibworth, SSE's managing director,wholesale, said.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

March 14, 2016 03:41 ET (07:41 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.