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Britain's SSE sells stake in West Yorkshire facilities for £995 million

·1-min read
FILE PHOTO: An SSE company logo is seen on signage outside the Pitlochry Dam hydro electric power station in Pitlochry
FILE PHOTO: An SSE company logo is seen on signage outside the Pitlochry Dam hydro electric power station in Pitlochry

(Reuters) - British utility SSE <SSE.L> on Tuesday agreed to sell its 50% stake in West Yorkshire-based Ferrybridge and Skelton Grange assets for 995 million pounds in cash, as part of its strategy to dispose of non-core assets by autumn 2021.

The company said the stake in the two facilities, which convert residual residential, commercial and industrial waste into renewable energy, would be sold to a fund managed by Mitsubishi UFJ Financial Group owned <8306.T> First Sentier Investors.

The assets are a joint venture between SSE and U.S.-based waste-to-energy firm Wheelabrator Technologies, which has been aiming to sell its power plants in the United Kingdom.

"This sale marks a major step in our plans to secure at least 2 billion pounds from disposals by autumn 2021, with just over 1.4 billion pounds now delivered," SSE Finance Director Gregor Alexander said in a statement.

The company's move follows the sale of stakes in certain wind farm projects to renewable infrastructure fund Greencoat UK Wind and French oil major Total <TOTF.PA>, among others.

The renewable power generator and network operator said it would use the cash from the disposals to support its 7.5 billion pound plan to invest in low-carbon energy infrastructure.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Aditya Soni)