Global Infrastructure Partners (GIP) is investing over £900m (€1bn) to buy OMERS Infrastructure’s 25% stake in UK gas distribution firm Scotia Gas Networks (SGN).
SGN is the second-largest gas distribution network in the UK, operating Scotland Gas Networks and Southern Gas Networks.
Adebayo Ogunlesi, chairman and managing partner of GIP, said: “We regard SGN as the premier gas distribution network operator in the UK and a key player in the energy transition. The conversion of gas distribution networks into hydrogen ready infrastructure represents a unique opportunity to significantly grow the company while supporting the UK’s net zero goals through the adoption of green hydrogen.”
Alastair Hall, a 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.”
Hall said OMERS Infrastructure will redeploy the capital back into growing its C$30bn (€20.4bn) direct global infrastructure portfolio.
Financial details were undisclosed.
In August, UK energy group SSE has agreed to sell its entire 33.3% stake in SGN to a consortium comprising existing SGN shareholder Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners for £1.22bn (€1.4bn).
The consortium also agreed to acquire Abu Dhabi Investment Authority’s 16.7% SGN stake.
To read the digital edition of the latest IPE Real Assets magazine click here.
