Ontario Teachers' Pension Plan, Toronto, has agreed to purchase a 25% stake in the electricity transmission network business of a Scotland-based energy provider for approximately £1.47 billion ($1.77 billion).
Specifically, OTPP will acquire an interest in SSEN Transmission, a unit of Perth, Scotland-based SSE PLC, according to a Nov. 25 news release.
The transaction is expected to be completed shortly, the release noted.
SSEN Transmission transports electricity generated from renewable resources, including onshore and offshore wind and hydropower, from the north of Scotland to more than one-quarter of the land mass of the U.K., the release noted.
The investment by OTPP will help support the British government's commitment to reaching net-zero greenhouse gas emissions by 2050, including the delivery of 50 gigawatts of offshore wind capacity by 2030.
"SSEN Transmission is one of Europe's fastest growing transmission networks," stated Charles Thomazi, senior managing director, head of EMEA infrastructure and natural resources at OTPP, in the release. "Its network stretches across some of the most challenging terrain in Scotland, from the North Sea and across the Highlands, to deliver safe, reliable, renewable energy to demand centers across the U.K."
A separate news release issued by SSE on Nov. 25 noted that the sale of a minority stake will allow SSE, as the majority shareholder, to retain control in relation to operating and managing the business, with OTPP to be "proportionately represented" on SSEN Transmission's board of directors.
OTPP had net assets of C$242.5 billion ($188.3 billion) as of June 30.
