Scottish & Southern Energy PLC
12 October 2007
SCOTTISH AND SOUTHERN ENERGY PLC
ACQUISITION OF FIBRE OPTIC NETWORK
Scottish and Southern Energy plc ('SSE') has entered into an agreement to
acquire a 1,100km fibre optic network from TeliaSonera International Carrier UK
Ltd, for a total consideration of £12.5m. The acquisition means that the network
owned and operated by SSE's telecoms subsidiary, Neos Networks, will increase to
3,500km.
The asset acquired by SSE comprises a duct containing fibre running between
London, Bristol, Manchester and Leeds, plus ten operational repeater sites. This
provides SSE with owned fibre capacity throughout the UK, together with local
connectivity that could be integrated into its existing network. The enlarged
network will enable Neos Networks to provide a greater volume of large bandwidth
services.
The acquisition follows the sale, in August 2007, of SSE's telecoms sites
assets, which was in line with its stated strategy of focusing its telecoms
business on network-related services.
Ian Marchant, Chief Executive of SSE, said: 'The acquisition of this additional
network is clearly in line with the stated strategy for our telecoms business.
It will allow us to enhance our provision of networking services to other
telecoms providers, companies and public sector organisations, and further
develop our telecoms business based around fibre assets, ducts and buildings.'
Adrian Pike, Managing Director of SSE's telecoms business, said: 'We have
achieved significant growth over the last few years, based on innovation,
competitive pricing and quality of service. Extensions such as this to our fibre
optic network will provide the foundation for additional growth in the future,
complemented by an ongoing focus on customer service.'
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