National Grid has agreed to sell a 60% stake in its U.K. gas transmission and metering business for GBP2.2 billion in cash and GBP2.0 billion in debt financing. The price achieved implies a 33% premium to the regulatory asset base value, which is toward the lower end of market expectations, Citi says. But the bank doesn't expect shares in the infrastructure company to move meaningfully on this announcement. "The National Grid shares now trade as one of the most expensive regulated names among the U.K. utilities, where we believe a lot is priced into the shares with the market's search for defensive name with inflation protection," Citi says. The bank has a neutral rating on the stock. (jaime.llinares@wsj.com)

(END) Dow Jones Newswires

March 28, 2022 02:25 ET (06:25 GMT)

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