Ontario local government pension fund sells SGN stake to Global Infrastructure Partners

OMERS has announced the sale of its 25% stake in Scotia Gas Networks Limited to Global Infrastructure Partners (GIP).
SGN is the second largest gas distribution network in the UK, which owns Scotland Gas Networks and Southern Gas Networks. It serves nearly six million homes and businesses.
OMERS is the Canadian investment fund that manage the retirement benefits of local government employees in Ontario. GIP is an independent infrastructure fund manager that makes equity and debt investments in infrastructure in the energy, transport, water, waste and digital sectors.
The transaction is expected to complete within the current financial year.
John Morea, chief executive of SGN, 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.”
Last year SSE agreed to sell its 33.3% stake in SGN to a consortium comprising existing SGN shareholder Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners for £1,225 million in cash. It is expected to complete within the current financial year and is conditional on certain regulatory approvals.

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