Scottish and Southern fails to complete sale of wind farm stake
Jul 20, 2011 - UK-based Scottish and Southern Energy (LON:SSE) said today it could not complete the sale of its 50% stake in the 36-MW Braes of Doune onshore wind farm in Scotland as the buyer was currently unable to finance the deal.
The plant, whose output is sold to a third party, was to become property of a fund managed by Climate Change Capital for GBP 61.3 million (USD 99m/EUR 70m) in cash. However, the fund has decided to postpone a capital raising due to financial market conditions and will not be able to purchase the asset.
The disposal was part of SSE's plan to optimise its wind farm portfolio through asset sales and purchases. "The asset will continue to deliver revenue for SSE and the proposed proceeds were not required to help fund SSE's investment programme," commented Gregor Alexander, finance director of the company.