January 15 (Renewables Now) - SSE plc (LON:SSE) on Wednesday said it was closing the GBP-500-million deal (USD 651m/EUR 585m) to offload its household energy and services business to Ovo Group.
"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 CEO Alistair Phillips-Davies commented.
As part of the deal, which was agreed in September, the UK utility is divesting SSE Energy Services Group Ltd to OVO Energy Ltd at an enterprise value of GBP 500 million, including GBP 400 million in cash and GBP 100 million in loan notes, due in 2029, to be issued by a member of the OVO group. SSE intends to use the proceeds from the transaction to cut its net debt.
SSE will continue to provide some services to OVO under a transitional services agreement for some time to help with the transition.
(GBP 1.0 = USD 1.301/EUR 1.170)