SSE plc to sell 50% stake in SSE Enterprise Telecoms to Infracapital
SSE plc has reached an agreement to sell a 50% share of its SSE Enterprise Telecoms business (SSEET) to Infracapital for a total consideration of up to £380m. The consideration comprises:
- £215m (less a small adjustment for working capital), to be paid on completion of the transaction, which is expected to be by the end of June 2019 at the latest;
- up to £85m deferred consideration based on SSEET achieving certain business objectives; and
- up to £80m to be paid in a series of instalments in the five-year period to 2024, based on financial targets for out-performance.
SSEET is an infrastructure provider that delivers leading edge connectivity services to businesses through its private UK-wide telecoms network. It is committed to helping the UK realise its digital ambitions through infrastructure investment and innovation.
This transaction aligns with the SSE group’s strategy to create value for shareholders and society by giving each of its businesses, such as SSEET, the best platform from which to realise its full potential and maximise its future success.
The cash proceeds of this transaction will be used to reduce SSE’s net debt.
Neil Kirkby, SSE Enterprise Managing Director, said:
“Infracapital has a proven record of actively supporting the companies they work with; this partnership heralds an exciting era of growth for our dynamic telecoms business. We both see huge opportunities for organisations capable of providing infrastructure that help give businesses reliable high-speed connectivity.”
James Harraway, Infracapital Director, said:
“High-speed connectivity is vital to economic growth and prosperity and we are delighted to announce this partnership with SSE plc. SSE Enterprise Telecoms is an established telecoms infrastructure provider, with a 12,000km fibre network, and is well positioned to support growth in this critical sector. Infracapital has considerable expertise of investing in digital infrastructure and we look forward to working closely with our new partners as the business continues to grow, deliver new projects and expand its networks.”