Sse Share Discussion Threads

[jrphoenixw2] 17/12/2018 08:02

SSE Plc (SSE)
Monday 17 December, 2018
SSE ENERGY SERVICES TRANSACTION NOT PROCEEDING
RNS Number : 6450K
17 December 2018

SSE ENERGY SERVICES TRANSACTION NOT PROCEEDING
· SSE Board has determined it is not in best interests of stakeholders to proceed with proposed SSE Energy Services/npower transaction
· SSE and Innogy SE unable to reach agreement on revised commercial terms
· SSE Energy Services expected to be profitable and cash flow-positive in 18/19 and 19/20
· Work to separate SSE Energy Services to continue, while other options are considered
----------------------

This looks like the core of it...
'While the Board believed strongly in the new company's potential to deliver benefits for customers and the wider market, it does not now believe the new company would be in a position to meet trading collateral requirements in a sustainable way; and does not now believe the new company would be capable of listing on the premium segment of Official List and Main Market of the London Stock Exchange.'

Ends with...
'Alistair Phillips-Davies, Chief Executive of SSE plc, said:

"This was a complex transaction with many moving parts. We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders. Ultimately, we have now concluded that it is not. This was not an easy decision to make, but we believe it is the right one.

"SSE Energy Services remains a profitable business with a strong track record, a customer-centric culture and an excellent team that has enabled it to be a market-leader for many years. We will build on this while continuing with separation activity in preparation for its long-term future outside the SSE group.

"We are now exploring all the available options with a view to delivering this future in the best possible way. In this, the interests of our customers, employees and shareholders remain paramount. In the meantime, we remain strongly committed to high standards of service for customers and delivery of our five-year dividend plan for shareholders."

[cwa1] 17/12/2018 07:45

Merger of energy services with Npower pulled.

[strutt12] 14/12/2018 12:42

hxxps://news.sky.com/story/sky-views-dont-switch-off-the-fall-of-small-energy-firms-affects-us-all-11580180?fbclid=IwAR33L2dgWuIPQ1w13LwEYSAe6MkSC2UsYO_ti99mEUZhvXJHmIq53rdRKio

[veryniceperson] 10/12/2018 13:25

Cheers scrwal

[scrwal] 10/12/2018 12:35

Deutsche Bank downgraded SSE to Hold from Buy. Effing brokers again.

[veryniceperson] 10/12/2018 11:21

Why the large drop today - 34. Have I missed something?

[coxsmn] 21/11/2018 16:14

Stock markets have had a great run in recent years, but with cash now offering positive inflation-adjusted returns, it may be wise for investors to dial back on risk, according to investment bank Goldman Sachs.

“Mixed-asset investors should maintain equity exposure but lift cash allocations,” said Goldman strategists.

Talking about stocks, the bank’s strategists said that investors should focus their portfolios on defensive sectors including utilities. The S&P 500 will generate “a modest single-digit absolute return” next year as the “robust” profit and economic growth seen in 2018 slows, they said.

[bountyhunter] 20/11/2018 12:17

Good point, just the new merged company really at risk. The remaining company should not be affected at least by most of what they have proposed so far which could well help the share price of that part post split. For that reason alone probably a good hold from here imo.

[strutt12] 20/11/2018 12:15

IF Corbyn @ McD were to nationalize energy suppliers then we are talking about the new merged company the one we'll be getting additional shares in and NOT the existing company that will then be paying 80p /7.23% yield, and that's a big IF!!
The split will take place before any new government changes and probably a big factor in the decision to split.

[bountyhunter] 20/11/2018 11:41

So would Corbyn & McD, let's hope they never get in! Imo TM is improving their chances right now with a deal worse than either WTO rules or remain and so needs to go asap. TMs blind deal as it stands will never get voted through parliament in any case for the above reasons. Even the DUP will not support it.

[strutt12] 20/11/2018 11:29

@ 97.5p they are paying you an 8.8% dividend, when they split we'll have shares in the separate business and @ 80p they will still be paying 7.23% increased at least by RPI for a futher four years.
I'll take that ;-)

[eeza] 17/11/2018 23:56

Soon be back to the Big 6 (5? ).

[wad collector] 15/11/2018 14:23

Politics...
If Rees-Mogg becomes front runner, then Corbyn really might get in...
Or is it a teacup tempest and the two resignees are nobodies anyway?

[strutt12] 15/11/2018 14:09

What a difference a day makes,
twenty four little hours.
;-)

[wad collector] 14/11/2018 13:15

A lot of ponderables in today's statements. I suppose the interpretation rather depends on whether one views the BOD as being fundamentally honest , or trying to obfuscate.

[jrphoenixw2] 14/11/2018 12:35

I don't think it's a case 'signalling that poor results are good', sure the results didn't read well but the share price responds to market expectations of the results, versus the actual results. I didn't see estimates of market expectations this time but meanwhile assume the expectations were fearing (even) worse results.

And yes I think you're right, I suspect the market is sensing a potential spin-off from Renewable/Energy services...

[trader2] 14/11/2018 10:43

Are SSE aiming to break themselves up? - and ultimately float (whole or partial) Renewables and Energy Services and the rest? as separate entities? Market signalling that poor results are good - because they maintained the divvi or because someone is starting to apply sum of parts valuations?

[skinny] 14/11/2018 10:05

JP Morgan Cazenove Neutral 1163.50 1450.00 1230.00 Reiterates

[bountyhunter] 14/11/2018 08:46

header timetable updated

[veryniceperson] 14/11/2018 08:15

We'll done sir. Priced in so far

[yump] 14/11/2018 07:55

Depends how much of the news was already in the price.

[careful] 14/11/2018 07:54

accounts getting harder to understand.
at first glance terrible, and yet a 3% dividend increase (near 9%. FY)

same at VOD yesterday, a thumping loss after write downs followed by a share price surge because of the dividend.
If this falls the dividend yield will be even higher.

Are these high dividend shares becoming Ponzi schemes?