SSE to Sell Energy Services Business to Ovo in Deal Worth GBP500 Million
September 13 2019 - 2:47AM
Dow Jones News
By Oliver Griffin
SSE PLC (SSE.LN) said Friday that it has entered an agreement
with Ovo Energy Ltd. to sell its energy services business for an
enterprise value of 500 million pounds ($616.6 million).
The energy company said the deal with Ovo Energy, which is a
wholly owned subsidiary of Ovo Group Ltd., would comprise GBP400
million in cash and GBP100 million in loan notes.
While GBP59 million will be deducted from the cash sum to
account for certain debts, SSE said proceeds from the sale will be
used to reduce its net debt.
SSE confirmed in August that it was in talks with Ovo Group
concerning the sale of SSE Energy Services. The company had
previously tried to merge SSE Energy Services and Npower, the U.K.
retail division of Innogy SE (IGY.XE), but the transaction was
terminated in December after SSE and Innogy failed to reach a
deal.
The company said all SSE Energy Services employees, who number
around 8,000, will transfer to Ovo.
The deal is expected to complete in either late 2019 or early
2020, subject to necessary regulatory approvals, SSE said.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
September 13, 2019 02:32 ET (06:32 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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