This article was first published on Activist Insight Online on September 20, 2021. For more information about the product, click here.
British energy group SSE has rebuffed a recent report that said it was close to splitting up following months of pressure from U.S. activist investor Elliott Management.
On Friday, The Telegraph wrote that Elliott convinced SSE’s board that a separation of the company’s wholesale networks business from its renewables operations was a good business idea.
However, SSE said on Monday that “there has been no decision to break up” the group and that the board was looking at ways to drive value “from the wealth of net zero opportunities the company is creating.”
SSE plans to pour 7.5 billion pounds ($10.3 billion) in low-carbon projects by 2025. The group is building the world’s largest offshore wind farm, Dogger Bank, in a joint venture with Norway’s Equinor. SSE turned its focus on greener initiatives after selling its household energy supply and services arm to OVO Energy for 500 million pounds ($685 million) last year.
Earlier in September, rumors surfaced that Elliott was pushing SSE to consider separating its renewable portfolio from its regulated electricity business. According to Bloomberg, Elliott has held meetings behind closed doors with SSE to argue for the breakup. The activist is also said to have discussed this with some of SSE’s top shareholders.
Shares in SSE were up 0.2% at 1.637,50 pence each as of 11:33 a.m. British Summer Time Monday. This gives the group a market value of 17 billion pounds ($23.3 billion).