SSE today announced that it would sell its stake in two energy from waste plants for £995m as it continues to raise money to invest in low-carbon projects.
Shares in the FTSE 100 company rose 3.9 per cent in the morning’s trading.
The divestment, which is expected to complete by the end of the year, will see the energy giant shed its 50 per cent share of the Ferrybridge and Skelton Grange assets.
The European Diversified Infrastructure Fund, which is run by Australian investment house First Sentier, will acquire the stake.
Between them, the plants have a combined generation capacity of nearly 200 megawatts and can process around 1.8m tonnes of waste a year.
The sales are part of SSE’s plan to raise £2bn in divestments by autumn next year, a key part of its intention to invest £7.5bn in low-carbon infrastructure over the next five years.
With the sale of its stake in the Walney offshore wind farm, as well as smart meter firm Mapleco already announced, the firm has already raised £1.4bn of this.
Finance director Gregor Alexander said: “While these multifuel assets have been successful ventures for SSE, they are non-core investments and we are pleased to have agreed a sale that delivers significant value for shareholders while sharpening our strategic focus on our core low-carbon businesses.”
Killik & Co analyst Mark Nelson said: “We continue to like SSE as a play on two structural growth opportunities; electricity networks and renewables, in particular the growth in UK offshore wind.
“Today’s divestment will support the company’s increased focus on these two areas and can be considered a positive. We reiterate our Buy recommendation.”
The deal is subject to European Commission approval.