SSE-backed investment fund Scottish Equity Partners (SEP) has announced the sale of Indigo Pipelines to asset manager Arjun Infrastructure Partners (AIP).
With around 180,000 gas connections, Glasgow-based firm Indigo Pipelines are are the third largest gar transport network in the UK.
SEP said the deal was subject to the satisfaction of certain conditions, the transaction is expected to complete by the end of February 2019.
It added that financial terms had not been disclosed.
Indigo Pipelines was established in 1992 by SSE as SSE Pipelines.
In September 2014, Indigo was acquired by the Environmental Capital Fund, an infrastructure fund managed by SEP.
Gary Le Sueur, a partner at SEP said: “Over the course of the last few years, we have developed Indigo into a high quality and successful business. It is now one of the fastest growing companies in its sector with an impressive track record.
“The proposed transaction will provide a significant return to our investors. We believe that AIP will be an excellent owner of the business and that Indigo will continue to perform strongly in the future.”
Pension-backed AIP has operational and financial experience in regulated utilities, energy and renewables, and transportation and manages over £1.2 billion of funds for institutional investors.
Surinder Toor, founding partner of AIP said: “Indigo is a modern, high-quality, gas pipelines network in the UK with long-term, regulated cash flows and significant growth potential. It represents an exciting investment opportunity for our investors.”
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