SSE to sell 50% stake in Enterprise Telecoms for up to £380m

SSE has agreed to sell a 50% stake in its Enterprise Telecoms Business (SSEET) to Infracapital for up to £380m, which will be used to reduce net debt.

The consideration comprises £215m to be paid on completion, which is expected to take place by the end of June 2019. There is also a deferred consideration of up to £85m based on SSEET achieving certain business conditions and up to £80m to be paid in a series of instalments to 2024, based on financial targets for outperformance.

SSEET is an infrastructure provider that delivers leading edge connectivity services to businesses through its private UK-wide telecoms network. It is committed to helping the UK realise its digital ambitions through infrastructure investment and innovation.

SSE said the deal aligns with its strategy to create value for shareholders and society by giving each of its businesses, such as SSEET, the best platform from which to realise its full potential and maximise its future success.

SSE managing director Neil Kirkby said: "Infracapital has a proven record of actively supporting the companies they work with; this partnership heralds an exciting era of growth for our dynamic telecoms business. We both see huge opportunities for organisations capable of providing infrastructure that help give businesses reliable high-speed connectivity."

At 1125 GMT, the shares were up 0.7% to 1,082p.