Business
Sale of SSE Energy Services to Ovo Energy
Sale of SSE Energy Services to Ovo Energy.
About this update from Sse Plc
[{"type":"text","content":"\n \nRNS Number : 8072Z SSE PLC 15 January 2020 \n\nSSE PLC TO COMPLETE SALE OF SSE ENERGY SERVICES TO OVO ENERGY\n15 January 2020\nSSE plc is today completing the sale of SSE Energy Services Group Limited, its household energy and services business in GB, to OVO Energy Limited for an enterprise value of £500m (the \"Transaction\").\nThe net proceeds of the Transaction will be used to reduce SSE's net debt (see Transaction Details below).\nIn the period since SSE and OVO agreed the sale in September 2019, the necessary regulatory approvals have been secured and joint integration planning has been undertaken to ensure a smooth transition for customers and employees.\nCompletion of the Transaction enables SSE to strengthen its focus on delivering the low-carbon infrastructure needed to help the UK reach net zero emissions.\nAlistair Phillips-Davies, Chief Executive of SSE plc, said:\n\"We are very pleased to be completing this transaction, which we firmly believe is the best outcome for the business, its customers and its employees.\n\"The sale is in line with our clear strategy, centred on developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core. SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the UK's vital net zero commitment in the years to come.\"\nStephen Fitzpatrick, CEO and Founder of OVO, said:\n\"Today is an exciting day. It marks the end of one chapter for OVO but, more importantly, the beginning of the next one together with the SSE Energy Services business. We started OVO with a bold ambition to do better for customers and have stayed true to that vision ever since.\n\"SSE's history of excellence at scale combined with OVO's innovative technology and our Plan Zero commitments mean that together, as one team, we can bring millions more people with us on our journey towards zero carbon living.\"\n TRANSACTION DETAILS\n· The net cash proceeds of the Transaction will be used to reduce SSE's net debt.\n· SSE Energy Services will be sold for an enterprise value of £500m comprising £400m in cash and £100m in loan notes.\n· The £100m loan note will be issued by a ...