Activist investor Elliott Administration calls for the break-up of Scottish vitality big SSE
Scottish vitality provider SSE has come beneath stress to interrupt up its enterprise from activist investor Elliott Administration.
The hedge fund has taken a stake within the Perth agency and is leaning on administration to separate its renewable vitality arm from its electrical energy enterprise.
The intervention makes SSE the second FTSE 100 agency in Elliott’s crosshairs, because it targets pharma big Glaxosmithkline and its boss Emma Walmsley.
Stress: Elliott Administration has taken a stake in vitality big SSE and is leaning on administration to separate its renewable vitality arm from its electrical energy enterprise
Elliott has been the driving pressure behind a number of shake-ups at blue-chip corporations and can be calling for change at medication big GSK.
In 2019, the fund was a key voice in a profitable marketing campaign for Premier Inn proprietor Whitbread to separate off cafe chain Costa Espresso, which was offered to Coca-Cola for £3.9billion.
The fund additionally tussled with mining big BHP in 2017, pressuring it to demerge its US petroleum belongings and scrap its twin itemizing in London and Australia.
It’s now transferring its essential itemizing to Sydney.
Breaking apart SSE is true out of the fund’s playbook, with Elliott having pushed Portugal’s EDP-Energias de Portugal to promote a part of its electrical energy distribution enterprise and put proceeds into renewables.
SSE has reorganised its enterprise in recent times to concentrate on inexperienced vitality, with the corporate planning to treble its renewable output by 2030.
The group additionally offered its 33 per cent stake in fuel agency SGN for £203million final month to fund its development plans.