By Ian Walker

SSE PLC said Thursday that it has agreed to sell its contracting business to the Aurelius Group for up to 27.5 million pounds ($37.9 million) as part of its strategy to focus on its core networks and renewables businesses.

The FTSE 100 energy company said the sale is expected to complete by the end of June, when around 1,900 employees will transfer to asset-management group Aurelius.

SSE will get an upfront payment of GBP17.5 million from Aurelius, which will be adjusted for working capital and other costs. It will also receive a GBP5 million loan note that carries interest of 6% up until 2026.

A further GBP5 million can be received subject to performance targets being met in fiscal 2022, SSE said.

SSE Finance Director Gregor Alexander said the sale leaves the SSE group "more focused around its renewables and networks core, allowing the contracting business to thrive in an environment better suited to its ambitions."

Shares at 1439 GMT were up 4.0 pence, or 0.3%, at 1,459.0 pence.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

April 01, 2021 10:59 ET (14:59 GMT)

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