The net proceeds of the Transaction will be used to reduce SSE's net debt (see Transaction Details below).
In the period since SSE and OVO agreed the sale in
Completion of the Transaction enables SSE to strengthen its focus on delivering the low-carbon infrastructure needed to help the
"We are very pleased to be completing this transaction, which we firmly believe is the best outcome for the business, its customers and its employees.
"The sale is in line with our clear strategy, centred on developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core. SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the
"Today is an exciting day. It marks the end of one chapter for OVO but, more importantly, the beginning of the next one together with the SSE Energy Services business. We started OVO with a bold ambition to do better for customers and have stayed true to that vision ever since.
"SSE's history of excellence at scale combined with OVO's innovative technology and our Plan Zero commitments mean that together, as one team, we can bring millions more people with us on our journey towards zero carbon living."
TRANSACTION DETAILS
- The net cash proceeds of the Transaction will be used to reduce SSE's net debt.
- SSE Energy Services will be sold for an enterprise value of £500m comprising £400m in cash and £100m in loan notes.
- The £100m loan note will be issued by a member of the OVO group and will be due in 2029, unless repaid earlier, with an annual interest rate of 13.25% payable in kind.
- As stated when the Transaction was announced on
- The Transaction was agreed on the basis of a 'Locked Box' mechanism, which set the date for the transfer of the economic interest in SSE Energy Services at
- SSE submitted Renewable Obligation Certificates in
- All of SSE Energy Services' c.8,000 employees will transfer to
- In order to ensure a smooth transition, for a period post completion, SSE will continue to provide certain services to OVO under a Transitional Services Agreement.
- Certain defined benefits pension liabilities of SSE Energy Services, relating to c.140 employees who have chosen to transfer their benefits, will transfer fully funded from SSE pension schemes to a new SSE Energy Services pension scheme.
- There will be no immediate day-to-day impact on customers; the SSE brand will be operated by OVO under license for a period, allowing time for a phased and carefully managed migration and continued high standards of customer service.
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