OMERS Infrastructure Announces Sale of Scotia Gas Networks Stake to Global Infrastructure Partners

As regular followers of RAO will know, we have been fortunate to have Michael Kelly, Chief Legal & Corporate Affairs Officer of OMERS, take part in our 2021 European event, alongside a host of other, equally impressive leaders . They will be discussing critical topics at the APAC event on March 23rd which every responsible Asset Owner is facing and would like insights on to help deliver returns, whilst meeting the agreed SDG’s.

22 December 2021

London – OMERS Infrastructure has today announced the signing of an agreement to sell a 25% interest in Scotia Gas Networks (SGN) to Global Infrastructure Partners.

SGN is the second largest gas distribution network in the UK, operating Scotland Gas Networks plc and Southern Gas Networks plc, two of eight regulated gas distribution networks in England, Wales and Scotland, under a license from Ofgem to distribute gas through their infrastructure network. SGN serves nearly six million homes and businesses.

“SGN was our first infrastructure investment in Europe, and we are very pleased with the company’s seventeen-year track record of successful value creation for both customers and investors. We first invested in SGN at its creation in 2005, and it is now the UK’s leading gas distribution company across key operational and customer metrics. Over this period, we have supported significant regulated capital investment programmes, the development of several commercial businesses, and SGN’s preparations for the transition to hydrogen including the H100 project in Fife,” said Alastair Hall, Senior Managing Director and Head of Europe for OMERS Infrastructure.

“Our work alongside our partners and the SGN management team over such a sustained period is a strong example of our active asset management approach. We will redeploy the capital back into growing our C$30 billion direct global infrastructure portfolio. We wish the company and its new investors well,” he continued.

OMERS substantial UK holdings include investments in a variety of infrastructure, real estate (through Oxford Properties) and private equity assets, including venture capital.

BofA Securities acted as financial adviser and Latham & Watkins LLP as legal adviser to OMERS Infrastructure. The transaction is expected to close in Q1 2022, subject to regulatory approvals.

More names to be announced in January but definitely an important event to put in the diary now!