SSE has come under fresh criticism from an activist investor for its “lackluster” plans to tackle the switch to cleaner energy, asking it to consider a larger division and add new directors to the board. board of directors.
Elliott went public with its demands weeks after energy giant FTSE 100 rejected the Wall Street hedge fund’s initial call to split in two, offering instead to sell a stake in its power grids division and reduce the dividend to finance growth.
In a letter to Sir John Manzoni, SSE Chairman Nabeel Bhanji and Jeff Rosenbaum of Elliott said the company had “failed to present a holistic view of how it can address its persistent undervaluation, reverse its historic share price underperformance and adequately fund renewable energy growth beyond 2026 ”.
They added: “We believe that with the right measures there is a clear path for the company to unlock £ 5bn of untapped value and establish its leadership position as the UK champion in renewable energy.”
Chief Executive Officer Alistair Phillips-Davies said SSE continues to have “constructive and supportive” discussions with major shareholders about its proposals.
“Separation endangers valuable growth options along the clean energy value chain, would jeopardize our ability to finance and deliver the key infrastructure the UK needs to create jobs and reach a net zero, and would lose shared skills that benefit the group … this is not the case. the right outcome to maximize value for shareholders or our other stakeholders, ”he said.
SSE is worth over £ 17 billion and owns and operates power grids in the north of Scotland and the south of England as well as a growing number of wind farms.
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This notice was published: 2021-12-07 10:53:03