Scottish & Southern Energy PLC
03 August 2007
SCOTTISH AND SOUTHERN ENERGY PLC
DISPOSAL OF TELECOMS SITES ASSETS
Scottish and Southern Energy plc ('SSE') has entered into an agreement with The
Wireless Infrastructure Company Limited, a wholly owned subsidiary of Wireless
Infrastructure Group Limited ('WIG'), under which it has sold its telecoms sites
assets from its telecoms business, SSE Telecommunications Ltd ('SSET'), for a
total consideration of £79m, excluding working capital.
The transaction involves over 220 tower sites which mobile phone operators, the
emergency services and local authorities use to provide mobile communications
and data services. SSET is retaining its network of fibre optic assets across
Great Britain and will continue to provide telecoms services to both commercial
and public sector customers under the Neos Networks brand.
The assets which have been disposed of contributed approximately 0.3% of SSE's
profit(1) in 2006/07.
Ian Marchant, Chief Executive of SSE, said:
'At our preliminary results we set out our intention to complete the re-focusing
of our telecoms business on network-related services, as opposed to site-related
services, and the sale of these assets is in line with that. The outcome of this
competitive process has allowed us to realise excellent value from a non-core
part of our business.'
Scott Coates, Director of Wireless Infrastructure Group, said:
'The acquisition of SSE's telecom site assets is highly strategic for WIG and
increases our UK tower portfolio to in excess of 1,000 sites. The transaction
extends WIG's geographic footprint and firmly establishes us as the leading
independent tower company in the UK. Key to this transaction was the ongoing,
long-term relationship with SSE to supply services and develop new sites.'
Adrian Pike, Group Managing Director of SSE Telecoms, said:
'The disposal of these assets will allow us to concentrate on our core business
of providing networking services to other telecoms providers, companies and
public sector organisations.
'Neos Networks, the wholly owned subsidiary of SSE Telecom, has enjoyed
excellent growth over the last three years. Our innovation, competitive pricing
and quality of service have helped to deliver a threefold increase in operating
profit. Extensions to our fibre optic network and continuous focus on customer
service will enable us to achieve additional growth in the future.
As part of the sale we have entered into a long term contract for the provision
of site services to support our core business. WIG's extensive experience in the
tower sector was an important factor in determining the final purchaser.'
Notes to Editors:
(1) Earnings before interest, taxes, depreciation and amortisation
Media enquiries to:
Scottish and Southern Energy plc
Justyn Smith, Head of Media Relations - 0845 0760 530
Wireless Infrasstructure Group Ltd
Scott Coates, Director - 0131 523 5696
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