Global Infrastructure Partners (GIP) is investing over 拢900m (鈧�1bn) to buy OMERS Infrastructure鈥檚 25% stake in UK gas distribution firm Scotia Gas Networks (SGN).
SGN is the second-largest gas distribution network in the UK, operating Scotland Gas Networks and Southern Gas Networks.
Adebayo Ogunlesi, chairman and managing partner of GIP, said: 鈥淲e regard SGN as the premier gas distribution network operator in the UK and a key player in the energy transition. The conversion of gas distribution networks into hydrogen ready infrastructure represents a unique opportunity to significantly grow the company while supporting the UK鈥檚 net zero goals through the adoption of green hydrogen.鈥�
Alastair Hall, a senior managing director and head of Europe for OMERS Infrastructure, said: 鈥淪GN was our first infrastructure investment in Europe, and we are very pleased with the company鈥檚 seventeen-year track record of successful value creation for both customers and investors.
鈥淲e first invested in SGN at its creation in 2005, and it is now the UK鈥檚 leading gas distribution company across key operational and customer metrics.鈥�
Hall said OMERS Infrastructure will redeploy the capital back into growing its C$30bn (鈧�20.4bn) direct global infrastructure portfolio.
Financial details were undisclosed.
In August, UK energy group SSE has agreed to sell its entire 33.3% stake in SGN to a consortium comprising existing SGN shareholder Ontario Teachers鈥� Pension Plan Board and Brookfield Super-Core Infrastructure Partners for 拢1.22bn (鈧�1.4bn).
The consortium also agreed to acquire Abu Dhabi Investment Authority鈥檚 16.7% SGN stake.
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