* Sells entire 33.3% SGN stake to Canadian consortium
* Consortium to also acquire ADIA's stake in SGN
Aug 2 (Reuters) - Britain's SSE on Monday agreed to
sell its entire 33.3% stake in Scotia Gas Networks (SGN) for
1.225 billion pounds ($1.70 billion) as the power producer
sharpens its focus on renewables and low-carbon electricity.
A Canadian consortium of Ontario Teachers' Pension Plan
Board and Brookfield Super-Core Infrastructure Partners will buy
SSE's stake in SGN, which supplies gas in England, Wales,
Scotland and the west of Northern Ireland.
SSE has set out plans to invest in low-carbon energy
infrastructure over the next five years and treble its renewable
electricity output by 2030 as it transitions to net zero.
It said in May it was on track to invest 7.5 billion pounds
in low-carbon projects up to 2025.
The SGN deal concludes SSE's more than 2 billion pound
disposal program and the sale is expected to complete within
the current financial year, the company said.
"The capital we are releasing through our disposals
program will help enable us to maximize the delivery of our
low-carbon electricity orientated strategy," said SSE Finance
Director Gregor Alexander.
Proceeds from the SGN sale will be used to cut net debt in
the short term and support investment plans, the London-listed
utility said, adding that it would provide an update with its
interim results in November.
SSE shares rose 1.8% in morning trade.
SSE acquired a 50% share in SGN in 2005 for 505 million
pounds ($702.30 million), before selling a 16.7% stake to a unit
of the Abu Dhabi Investment Authority (ADIA) in 2016.
SSE said on Monday the Canadian consortium has also agreed
to acquire the ADIA stake for an undisclosed amount.
Morgan Stanley and Credit Suisse acted as financial advisers
to SSE and Nomura acted as financial adviser to ADIA. Evercore
acted as financial adviser to Ontario Teachers'.
($1 = 0.7191 pounds)
(Reporting by Pushkala Aripaka and Yadarisa Shabong in
Bengaluru; editing by Uttaresh.V and Louise Heavens and Kirsten