Shareholders of energy giant SSE will cast their votes at a general meeting in Perth next month on whether to merge their domestic energy business with nPower.
The proposed merger – which is being investigated by the Competitions and Market Authority – will shake-up the energy market, with the new company to be formed turning the current big six firms into a big five.
SSE said the new company will combine “the resources and experience of two established players with the focus and agility of an independent supplier”.
The Perth-based firm yesterday published a circular and notice of the general meeting for shareholders which will take place on July 19, immediately following the group’s AGM.
At the meeting two resolutions will be proposed.
The first is a declaration of a special dividend in the form of shares in the new company – effectively approving the merger – while the second is a waiver of the obligation on Innogy, which owns Npower, to make a general offer for all the issued shares in the new company.
SSE shareholders will retain their existing SSE shares and be allocated one share in the new company for each SSE plc share they hold.
The new company will be owned 65.58% by SSE shareholders with Innogy holding 34.42% of shares.
The notice also confirms that chief executive designate of the new company, Katie Bickerstaffe, will take up her appointment on September 24, and Gordon Boyd, chief financial officer designate, is expected to take up his appointment on July 4.
Richard Gillingwater, chairman of SSE, said: “The board believes that demerging SSE Energy Services and combining it with npower has strong strategic logic and the potential to drive significant benefits for the business and its customers.
“A standalone business will also have the ability to determine and allocate its own capital, allowing day-to-day decision-making to be more closely aligned with strategy and thereby facilitating the delivery of greater benefits to all stakeholders going forward, including customers and employees.
“The board unanimously recommends that shareholders vote in favour of the resolutions.”
