Shares in energy company SSE (SSE) bolted 3.6% higher to £13.7 higher on Tuesday after the company disposed of its 50% interest in two energy-to-waste projects, raising £995 million in cash.
SSE is selling the assets to an infrastructure fund managed by First Sentier Investors and the transaction is expected to close by the end of the year, subject to regulatory approval.
The two assets, Multifuel Energy Limited and Multifuel Energy 2 Limited, were identified by management as early disposal candidates as part of a plan to raise £2 billion from non-core businesses by the autumn of 2021.
Today’s announcement follows on from the sale of SSE’s 25.1% non-operating stake in Walney Offshore Wind Farm to Greencoat UK Wind (UKW) for £350 million and the agreement to sell its 33% equity interest in meter asset provider MapleCo to Equitix, under which SSE will receive net proceeds of around £90 million on closing.
The proceeds have been earmarked to support the company’s plans to invest £7.5 billion in low carbon energy infrastructure over the next five years as well as reduce debts.
Group finance director Gregor Alexander commented: ‘This sale marks a major step in our plans to secure at least £2 billion from disposals by autumn 2021, with just over £1.4 billion now delivered.’
Today’s disposal moves the company along way down the track in reaching its target while also securing a good price for shareholders from the waste-to-energy assets which generated an adjusted operating profit for SSE of £30.5 million in the year to 31 March 2020.
