Nabarro advises SEGRO on £49.25m sale of its shares in Slough Heat and Power to Scottish and Southern Energy

Nabarro has advised SEGRO plc on the sale of its interests in Slough Heat and Power (SH&P) to Scottish Southern and Energy plc (SSE) for a total cash consideration of £49.25 million.

SEGRO is a property investment and development company focused on the provision of flexible business space in Europe. The company has a range of customers who operate across many sectors, it represents both small and large businesses, from start ups to global corporations. Head quartered in the UK, SEGRO has a listing on the London Stock Exchange and on the Euronext in Paris.

Scottish and Southern Energy is one of the largest energy companies in the UK, serving customers from more than 150 sites across the UK. It is involved in the generation, transmission, distribution and supply of electricity; energy trading; the storage, distribution and supply of gas; electrical and utility contracting; and telecoms.

As part of the deal, Scottish and Southern Energy was also simultaneously granted a 45 year lease of the power station which is located on the Slough Trading Estate, and contracted to an ‘Energy Availability Agreement’ to commit to ensuring that Slough Heat and Power continues to offer a high level of utility services to SEGRO customers. Completion of the transaction took place on 31 December 2007.

The corporate team at Nabarro was led by corporate partner Andrew Wigfall, assisted by associates Sinead Garcia, Dhruti Gore, Simon Pereira, and Els Janssens. Specialist assistance from energy partner Tom Bainbridge (assisted by Jon Cohen and Sima Dad), property partner Mike Logan (assisted by John Staheli, David Crossley, and Neil Dryer), environment partner Anna Marshall (assisted by Ray Clarke, Nicola Power and Lukas Rootman) and tax partner Michael Cant (assisted by Ben Tennant).

Dundas & Wilson acted for Scottish and Southern Energy, as well as its in-house team. Stewart Law also advised SEGRO on employment issues and Lovells on pensions.

Andrew Wigfall, corporate partner, said:

“We are seeing quite a bit of activity in the energy sector at the moment. This was an interesting deal and there were a number of regulatory issues to be addressed in structuring the sale. We have a long standing business relationship with SEGRO, and look forward to continuing our existing relationship.”

If you would like any further information or have any queries please contact:

Andrew Wigfall
Partner
T +44 (0)20 7524 6015
a.wigfall@nabarro.com