Scottish and Southern Energy plc (SSE) has entered into an agreement to acquire Airtricity Holdings Limited (Airtricity) from its current shareholders.
The agreement is subject to clearance by the Irish Competition Authority and by the Irish and Northern Ireland energy regulators and the acquisition is expected to be completed in the first quarter of 2008. Airtricity disposed of its North American business unit in October 2007 and the proceeds from this disposal remain within the business. The implied equity value of the business being acquired is € 1,080 million. In addition, SSE will assume liability for Airtricity's net debt, of € 375 million (based on the effective acquisition date of 31 August 2007), giving an enterprise value of € 1,455 million for the business being acquired. In addition to the equity value of € 1,080 million, € 746.5 million will be paid in consideration for the net proceeds received by Airtricity for the disposal of its North American business, resulting in a total cash consideration of € 1,826.5 million. The consideration will be funded from facilities provided by Barclays Bank plc and The Royal Bank of Scotland plc, part of which will be repaid shortly after completion, using cash in Airtricity.
