December 11 (Renewables Now) - The UK Competition and Markets Authority (CMA) has given the green light to SSE plc (LON:SSE) for the planned GBP-500-million (USD 658m/EUR 594m) sale of its household energy and services business to Ovo Group Ltd.
Alistair Phillips-Davies, CEO of SSE, welcomed the CMA decision, saying that the companies can now prepare to wrap up the transaction around mid-January 2020.
"Completion of the transaction will give SSE plc even sharper focus to delivering the low carbon infrastructure needed to help the UK reach net zero emissions. We have a clear strategy around developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core," Phillips-Davies stated.
Under the terms of the deal, the UK utility will sell SSE Energy Services Group Ltd to OVO Group at an enterprise value of GBP 500 million, including GBP 400 million in cash and GBP 100 million in loan notes. About GBP 59 million will be deducted from the cash portion to reflect accruals in respect of the Capacity Market mechanism along with other debt-like items. SSE intends to use the proceeds from the sale to cut its net debt.
SSE Energy Services is a supplier of energy and related services to household customers across Great Britain. The business has been held for disposal and has been accounted for as a discontinued operation as of March 31, 2019.
(GBP 1.0 = USD 1.317/EUR 1.188)