National Grid to Sell 60% Stake in UK Gas Transmission Network
March 28 2022 - 2:27AM
Dow Jones News
By Jaime Llinares Taboada
National Grid PLC has agreed to sell a 60% stake in its U.K.
gas-transmission business to an infrastructure investors consortium
comprised of Macquarie Asset Management and British Columbia
Investment Management Corp.
In a statement released on Sunday, the U.K.
energy-infrastructure group said that it will receive 2.2 billion
pounds ($2.90 billion) in cash and GBP2.0 billion from additional
debt financing at completion. National Grid will retain a 40%
interest in National Grid Gas, which operates Great Britain's
gas-transmission system and also owns a gas-metering business.
The terms of the deal, which is expected to be completed in the
second half of the year, imply an enterprise value of around GBP9.6
billion for NGG.
National Grid also entered into an option agreement with the
consortium for the potential sale of the remaining 40% stake in the
company.
National Grid said that the sale forms part of its pivot toward
electricity, as it increases the share of its assets in electricity
to 70% from 60%. The group last year acquired Western Power
Distribution, the largest U.K. power-distribution company, for
GBP7.8 billion.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
March 28, 2022 02:12 ET (06:12 GMT)
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