LONDON, UK: National Grid has agreed to sell another 20% stake in its UK gas transmission and metering business (National Gas) to a group of long-term infrastructure investors led by Macquarie Asset Management (the “Consortium”).
The deal is worth about £0.7 billion and is on the same financial terms as the original 60% sale, which was completed in January 2023. The sale is subject to regulatory approval and is expected to close in the second half of 2023.
National Grid also confirmed that it has given the Consortium an option to buy the remaining 20% stake in National Gas between May and July 2024. If the Consortium exercises this option partially, National Grid can sell the rest of its stake to the Consortium between December 2024 and December 2024.
The price for the remaining stake will be based on the same financial terms as the original sale, with some adjustments.
National Grid said it will use the proceeds from the sale for general corporate purposes, including paying off debt. It said the new arrangements will benefit the company as previously announced.
John Pettigrew, Chief Executive of National Grid, said: “We’re pleased to reach the next milestone in this process, and we”ll continue to work closely with the Consortium.”
Martin Bradley, European Head of Infrastructure for Macquarie Asset Management, said: “This additional investment underlines our commitment to National Gas and the critical role it plays in the UK’s energy system. We have been working closely with the National Gas team since January as they have continued to meet the energy needs of millions of households and businesses. We are pleased to continue our strong relationship with National Grid, and aspire to acquire the Remaining Interest in due course.”
The sale does not require National Grid shareholders’ approval. National Grid was advised by Barclays and Robey Warshaw, and Linklaters is acting as legal adviser.
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