International law firm CMS has advised SSE on the sale of its entire 33.3% stake in gas distribution operator Scotia Gas Networks Ltd (SGN) to a consortium comprising existing SGN shareholder Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners.
SGN includes Scotland Gas Networks plc and Southern Gas Networks plc, two of the eight regulated gas distribution networks in England, Wales and Scotland, in addition to SGN Natural Gas Ltd, which provides gas to customers in the west of Northern Ireland as well as other non-regulated ancillary businesses.
The transaction is based on an effective economic date of 31 March 2021 and is for a consideration of £1.225bn in cash. It is expected to complete within the current financial year and is conditional on certain regulatory approvals.
This deal will conclude SSE’s £2bn plus disposals programme announced in June 2020. SSE’s strategy is to create value for shareholders and society in a sustainable way by developing, building, operating, and investing in the electricity infrastructure and businesses needed in the transition to net zero. The programme has realised significant value from non-core assets while intensifying SSE’s strategic focus on its core low-carbon electricity businesses.
Charles Currier, Co-head of Corporate at CMS UK, comments: “We are pleased to support long-standing client SSE on this strategic transaction. Across the board we’re witnessing an increased interest in ESG, with net zero commitments gaining a firm foothold in strategic planning. At CMS, we are experienced at advising clients on some of the highest value and most complex transactions in the energy sector and are well-placed to support clients on disposals and investments related to their sustainability goals.”
The CMS team was led by Charles Currier and Doug Land, and included Jennifer Louch, Brynn Horner, Aisling Knapton and Nick Lindsay (Corporate); Aaron Fairhurst and Jason Todd (Tax); Caroline Hobson, Kabir Garyali, Jonathan Carter-Lewis and Cynthia Johnson (TMT); and Louise Dalton and Thomas Forman (Energy and Climate Change).
In April 2020, CMS UK and its international offices announced plans to reduce carbon emissions to net zero by 2025 backed by Science Based Targets which were officially approved by the Science Based Targets Initiative in August 2020.
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