SSE plc has announced that it has reached an agreement to sell a 50% share of its SSE Enterprise Telecoms business (SSEET) to Infracapital for a total consideration of up to GBP380 million (US$484.6 million).

SSEET is an infrastructure provider that delivers leading-edge connectivity services to businesses through its private UK-wide telecoms network. It is committed to helping the UK realize its digital ambitions through infrastructure investment and innovation.

The consideration comprises GBP215 million (US$274.1 million) (less a small adjustment for working capital), to be paid on completion of the transaction; up to GBP85 million (US$108.4 million) deferred consideration based on SSEET achieving certain business objectives; and up to GBP80 million (US$102.0 million) to be paid in a series of instalments in the five-year period to 2024, based on financial targets for out-performance.

The transaction is expected to close by the end of June 2019 at the latest. The cash proceeds will be used to reduce SSE’s net debt.