Sale of a stake in Clyde wind farm to Greencoat and GLIL
SSE has signed agreements for the sale of 49.9% of its operational 349.6MW Clyde Wind Farm located in South Lanarkshire to Greencoat UK Wind Plc (“UKW”) and GMPF & LPFA Infrastructure LLP (“GLIL”) for a headline consideration of £355 million.
When the 172.8MW extension to Clyde is commissioned (currently under construction, completion expected in June 2017) the equity stake jointly owned by UKW and GLIL will be diluted to 30% with SSE retaining 70%. This shareholding implies a combined valuation of the two wind farms of £2.27* million per MW.
In addition to completing the construction of the extension, SSE will provide long term management services for the day to day operations of all 522.4MW as well as long term route to market PPA’s. Siemens will provide long term turbine O&M services.
In March 2014 SSE announced a disposal programme with intended proceeds and debt reduction of £1bn from the sale of non-core assets and businesses and the sale of existing or in-development onshore wind farms. Today’s announcement takes the total proceeds achieved to date in excess of that target and will release capital to support future investment.
Martin Pibworth, SSE’s Managing Director, Wholesale, said: “We are pleased to confirm the sale of a stake in our flagship Clyde wind farm to UKW and GLIL. The sale represents another significant step in a programme of disposals to recycle capital and optimise our wind farm pipeline. The proceeds from this disposal will help to support our future investments in a balanced range of energy assets.”
*The structure of the transaction implies a valuation of £2.03m/MW for the existing Clyde wind farm and £2.70m/MW for Clyde extension when built.
SSE was advised by Rothschild, Credit-Suisse and CMS.