SSE sold its 50% stake in a Yorkshire energy-from-waste-venture for £995m.

News sent shares rising 4% to £13.77 in morning trading on Tuesday.

Proceeds will be reinvested in low-carbon energy infrastructure.

Shares in SSE jumped to the top of the FTSE risers list today after the energy giant struck a deal to sell its 50 per cent stake in a Yorkshire based 'energy-from-waste' venture for nearly £1billion.

The firm sold its holding in sites in Ferrybridge and Skelton Grange that convert commercial and industrial waste into energy for £995million to an infrastructure fund managed by First Sentier Investors.

The sale leaves SSE a step closer to hitting its target of £2billion worth of disposals by autumn next year, as it has now sold off non-key businesses for a total of £1.4billion.

Sale agreed: SSE sold its 50 per cent stake in sites Ferrybridge and Skelton Grange for £995million to an infrastructure fund managed by First Sentier Investors

The company, which is building out its renewable energy capacity, including wind power, said proceeds of this and previous disposals will be used to support its plans to invest £7.5billion in low-carbon energy over the next five years and to pay off debt.

Shift: SSE is building out its renewable energy capacity and offloading non-key businesses

Shares in FTSE 100 listed SSE were up 4 per cent to £13.77 by 11am on Tuesday, their highest level since July. The shares are down 7 per cent since the start of the year though.

The latest sale follows that of SSE's stake in Walney Offshore Wind Farm to Greencoat UK energy for £350million, and an agreement to sell its 33 per cent interest in meter asset provider MapleCo for around £90million in net proceeds.

Mark Nelson, an analyst at Killik & Co, said: 'The divestments will help to strengthen the balance sheet and support the company's plans to invest £7.5billion in low-carbon energy infrastructure over the next five years.'

He added the latest sale will boost SSE's increased focus on electricity networks and renewable energy, in particular UK offshore wind.

The transaction is expected to complete by late 2020, subject to antitrust approval by the European Commission.

This article is republished from Daily Mail Online. Read the original article.

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