Utility SSE is set to sell a massive stake in two Scottish wind farms in a deal that it has made with Greencoat Capital, a renewable investment manager, and its Greencoat UK Wind subsidiary. The said deal is reportedly worth £635 million.
The company said that the two investors will take a 49.9 percent stake in the 320 megawatt Dunmaglass and Stronelairg sites, while SSE will continue to operate the turbines.
The deal is set to be finalised this coming March. It will free up approximately £200 million to fund a share buyback, while the rest of the proceeds will be paying down the debt of the company.
Gregor Alexander, the finance director of the SSE, stated: “Both Stronelairg and Dunmaglass are a testament to SSE’s ability to design, develop, construct and operate first-class renewable energy assets. Onshore wind makes a huge contribution to supplying low carbon electricity to the British market and to meeting the UK’s carbon reduction targets.”
He added: “The sale of stakes in these wind farms to Greencoat is a continuation of SSE’s longstanding approach of partnering and securing value for shareholders at appropriate times.”
The sale supports the goal of the SSE to focus on its core regulated business areas in networks, flexible thermal generation, business energy sales, and renewables.
Laurence Fumagalli of Greencoat Capital stated: “We are pleased to add two more large wind farm investments to our portfolio, located close to our existing capacity in the Highlands.
“We continue to see a strong pipeline of acquisition opportunities, and our independence and our proven track record in execution and operations makes us an attractive partner for utility vendors looking to recycle capital.”