OMERS Infrastructure has agreed to sell its 25% stake in SGN to Global Infrastructure Partners for an undisclosed sum.
SGN is the second largest gas distribution network in Great Britain, serving nearly six million homes and businesses across two license areas in Scotland and southern England.
Alistair Hall, senior managing director and head of Europe for OMERS Infrastructure, said: “SGN was our first infrastructure investment in Europe, and we are very pleased with the company’s seventeen-year track record of successful value creation for both customers and investors. We first invested in SGN at its creation in 2005, and it is now the UK’s leading gas distribution company across key operational and customer metrics.
“Over this period, we have supported significant regulated capital investment programmes, the development of several commercial businesses, and SGN’s preparations for the transition to hydrogen including the H100 project in Fife.”
SNG chief executive John Morea said: “SGN has a pioneering role in shaping the UK’s energy future, so GIP’s investment is good news and we look forward to working with GIP as part of the SGN Board. We would like to thank OMERS for a successful and productive relationship during the past 17 years.
“As the start of a new year approaches, we remain fully committed to advancing a range of innovative projects that will place hydrogen and other green gases at the heart of the UK’s energy transition. The UK’s gas networks are key to meeting ambitious net zero goals and we look forward to being part of the solution as we continue to provide excellent service for our customers.”
SSE sold a 16.7% stake in SGN to the Abu Dhabi Investment Authority (ADI) in 2016, leaving it with a remaining share of 33.3%.
In August of this year, SSE and ADI both agreed to sell their entire stakes to a consortium comprised of the Ontario Teachers’ Pension Plan Board – which already owned a 25% stake – and Brookfield Super-Core Infrastructure Partners, with the former receiving an additional 12.5% to leave them with equal stakes of 37.5% each.