SSE PLC completed the sale of a 25% minority stake in its electricity transmission network business, SSEN Transmission, to the Ontario Teachers' Pension Plan Board for £1.47 billion, the British utility said Nov. 30.

SSEN Transmission operates under SSE's licensed entity, Scottish Hydro Electric Transmission PLC. Following the sale, SSE continues to retain control of the business as its majority shareholder, with the pension plan board to be proportionately represented on the transmission utility's board of directors.

"The proceeds will support the significant growth SSE continues to see in SSEN Transmission and further growth opportunities across SSE's other core businesses, while ensuring an attractive balance of capital allocation across the group," SSE said in a statement.

The sale is part of SSE's strategy to divest minority stakes in its core electricity transmission and distribution network assets to help fund its net-zero acceleration program. The sale process for a stake in SSE's electricity distribution business is expected to start in early 2023, the utility said.

Morgan Stanley and Rothschild and Co. acted as joint financial advisers and Freshfields Bruckhaus Deringer LLP acted as legal advisers to SSE on the sale. Ontario Teachers' was advised by Evercore as sole financial adviser and by Linklaters LLP as legal adviser.

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