SSE has agreed to sell a stake in Scotia Gas Networks (SGN) to subsidiaries of the Abu Dhabi Investment Authority (ADIA).

The 16.7% share will be sold for £621 million and the transaction is expected to be completed by the end of October. SSE added it will retain a 33.3% equity stake in SGN.

The deal is part of a review by the company announced in May. SSE purchased a 50% share in SGN for £505m in 2005.

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Following this deal, SSE will have an ownership interest in five economically-regulated energy networks with an estimated total Regulated Asset Value of over £7 billion.

Alistair Phillips-Davies, Chief Executive of SSE, said: "Over the last decade, SGN has become a leading gas distribution business for the benefit of customers and investors alike. The sale of a 16.7% stake confirms SSE's ability to deliver value for shareholders through focused, timely disposals while at the same time retaining a diverse range of regulated and unregulated businesses in order to support long term dividend growth. We look forward to working with all of SGN's shareholders to support the continued success of the business in meeting the needs of customers and earning a return for investors."

(LM/MH)