PERTH (SCOTLAND) (dpa-AFX) - The Board of SSE plc (SSE.L) announced an agreement with innogy SE in respect of a proposed demerger of SSE's household energy and services business in Great Britain (SSE Retail) and combination with innogy's subsidiary npower Group plc to form a new independent UK incorporated company. The proportion of the combined retail company to be held by existing shareholders of SSE on completion of the transaction will be 65.6% and the proportion to be held by innogy will be 34.4%. The combined retail company will apply for a premium listing on the main market of the London Stock Exchange.
The transaction will be implemented by SSE demerging SSE Retail by declaring a dividend in specie to SSE shareholders or by a repayment of capital. In each case, this would be satisfied by the transfer of SSE Retail to the combined retail company and the issue of shares in the combined retail company to SSE shareholders on a pro-rata basis. Following this demerger, Innogy will contribute npower to the combined retail company in consideration for the issue of shares in the combined retail company to innogy.
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