SSE takeover of energy service arm from Ovo for £500M on the cards

SSE, the UK energy giant, has stated that it will soon complete the sale of its energy service arm to Ovo for £500 million, incorporating £400 million in cash and £100 million in loan notes. SSE sees this as an opportunity at hand to cash in on and boost renewable energy portfolio. While SSE may use the proceeds to reduce its net debt, Ovo Energy will take control of the former’s household and services businesses.
Apparently, SSE is the third largest supplier in the UK energy industry, propelled by 3.5 million strong customers and 8,000 staff. Post-acquisition, 8,000 staff will transfer to Ovo. Meanwhile, Ovo, UK’s largest independent energy supplier, is bolstered by 1.5 million strong customers and 2,000 customers.
Chief Executive of SSE plc Alistair Phillips-Davies expressed his delight to see the likely completion of the transaction, which will boost the stakeholders. The Chief Executive stated that the sale would hover around development, operation and owning of renewable energy and electricity network assets, as well as expanding business in line with renewable energy network.
SSE is set to enter the new decade with a more focused group and will be in tune with spearheading the low carbon transformation needed to achieve the pivotal net zero commitment of the U.K. in the ensuing period.
Outer Moray Firth- based construction of the 84-turbine Beatrice Offshore Wind Farm and the potential Seagreen project have bolstered SSE’s dominance as the largest offshore wind portfolio in the globe.
The company, under the aegis of SSE Renewables— its clean energy subsidiary— also operates an array of onshore wind developments such as Bhlaraidh wind farm north-west of Invermoriston and Stronelairg, a 66 turbine wind farm near Fort Augustus.
Stephen Fitzpatric, Founder and CEO of OVO commented that Ovo’s innovative technology, along with SSE’s legacy will help them meet the audacious goal of zero carbon living.
Source credit:
https://www.energyvoice.com/otherenergy/217988/sse-clears-way-for-renewables-with-completion-of-500m-deal-with-ovo-energy/