Response to Speculation: UK's SSE Says No Break-up Decision Made

Chris Peters and Muvija M
Monday, September 20, 2021

Britain's SSE has not made a decision to break itself up, the renewable power and networks group said on Monday, after a newspaper report said it was close to splitting up following months of pressure from U.S. activist investor Elliott.

The company said it would update investors on growth plans in due course. It is scheduled to report interim results in mid-November.

FTSE 100-listed SSE, which has been sharpening its focus on renewable power generation and electricity networks after the sale of its retail division to OVO Energy, plans to invest 7.5 billion pounds ($10.3 billion) in low-carbon projects up to 2025.

The Telegraph newspaper reported on Friday that SSE was close to splitting into two separate blue-chip companies.

"The Board remains fully focused on strategic choices which will drive shareholder value from the wealth of net zero opportunities the company is creating," the company said.

"SSE is currently building more offshore wind than any company in the world, expanding internationally, and investing in the low-carbon electricity infrastructure."

SSE shares have gained 9% this year, outperforming the FTSE-100's 7% rise over the same period. In early Monday trading, SSE stock was little changed.

Elliott, which recently targeted London-listed pharmaceutical giant GSK , has been in talks with SSE's board to separate the company's wholesale networks business from its renewables operations for more than a year, the Telegraph report added, citing unidentified sources.

Elliott's communications team did not immediately respond to a Reuters request for comment.

Energy companies in Britain and across the world are under the spotlight amid a surge in gas prices.

($1 = 0.7313 pounds)

(Reporting by Chris Peters and Muvija M in Bengaluru Editing by Saumyadeb Chakrabarty and Mark Potter)

Categories: People & Companies Industry News Activity Renewable Energy Energy Offshore Wind

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