Scottish and Southern Energy is placing up to 5 per cent of its share capital in the hope of raising up to £470m for new investments, particularly in wind farms. The announcement that 40 million new shares are to be placed sent the energy group's stock price down 8.2 per cent to 1,159p yesterday. The plan is to use the money for identified investment opportunities, worth £6.7bn over the next five years according to the company.
It is already in the process of finalising plans – worth £300m taken together – to take a majority stake in a Scottish wind farm and to develop a joint venture interest in a site in Eire. Ian Marchant, the chief executive, said: "Our programme of capital investment in assets which are of critical importance in the UK and Ireland, plus the ability to make opportunistic bolt-on acquisitions should they arise, continue to be at the heart of our plans."