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SSE to Sell Further Stake in Scottish Windfarm to Greencoat, GLIL Infrastructure.

M2 EQUITYBITES-August 3, 2017-SSE to Sell Further Stake in Scottish Windfarm to Greencoat, GLIL Infrastructure


3 August 2017 - Scotland, UK-based energy company SSE plc (LSE: SSE) has signed an agreement to sell a further stake in Clyde Windfarm (Scotland) Ltd. to Greencoat UK Wind Plc and GLIL Infrastructure LLP, the company said.

In March 2016, SSE announced the initial sale of Clyde equating to 49.9% of the existing 349.6mw operational wind farm.

At the time, it was highlighted that when the commercial operation (which will occur shortly) of the 172.8mw extension began, the equity stake in Clyde jointly owned by UKW and GLIL would be diluted to 30% with SSE retaining 70%.

Under the new agreement, on dilution, UKW and GLIL will acquire an additional 5% of Clyde, equating to 26.1mw, for a cash consideration of GBP 67.8m (USD 89.11m), before costs, taking their share of the total Clyde development to 35%.

UKW and GLIL also have the option to buy a further 14.9% of Clyde, equating to 77.8mw, for a cash consideration of GBP 202.2m, before costs. This option can be exercised between 1 April 2018 and 30 June 2018.

If this option were to be exercised, SSE's share in Clyde would reduce to 50.1% with UKW and GLIL owning the remaining 49.9%.

This transaction implies a combined valuation of the two wind farms of GBP2.6m per MW.

The Clyde windfarm is located in South Lanarkshire and the original wind farm has a combined generating capacity of 349.6mw from 152 Siemens 2.3mw turbines. The Clyde Extension consists of 54 Siemens 3.2mw turbines with a total capacity of 172.8mw and SSE believes it is one of the most efficient large wind farms in Great Britain.

Clyde Windfarm (Scotland) Ltd. is the entity that holds the assets of the original 349.6mw Clyde windfarm and the 172.8mw Clyde Extension Windfarm.

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Publication:M2 EquityBites (EQB)
Geographic Code:4EUUK
Date:Aug 3, 2017
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