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National Grid PLC on Wednesday said it agreed to sell a further 20% equity interest in its UK gas transmission and metering business, otherwise known as National Gas, to existing majority owners. The electricity infrastructure and gas utility said the £700 million transaction was on equivalent terms to the original 60% transaction, which completed in January. National Grid expects the sale to a consortium of long-term infrastructure investors led by Macquarie Asset Management Holdings Pty Ltd, a Macquarie Group Ltd asset manager, to complete in the second half of 2023. The total proceeds will be used for general corporate purposes, National Grid said, including the repayment of debt. In January, National Grid agreed the 60% equity sale of National Gas to the Macquarie Asset Management-led consortium for £2.2 billion. National Grid said the sale was part of its strategy to pivot towards electricity and follows its 2021 acquisition of Western Power Distribution for £7.8 billion. The company also confirmed that it agreed a new option with the consortium for the potential sale of its remaining 20% stake in National Gas. The option is exercisable by the consortium between May 1, 2024 and July 31, 2024 and if the option is only partially exercised by the consortium, National Grid will have the right to put the remainder of its National Gas interest to the consortium, exercisable by National Grid between December 1, 2024 and December 31, 2024. If one or both of these options are exercised, National Grid said it expects the consideration for its remaining National Gas stake to be on equivalent financial terms to the original 60% transaction, subject to certain adjustments. ‘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,’ said Martin Bradley, European head of infrastructure for Macquarie Asset Management. ‘We are pleased to continue our strong relationship with National Grid, and aspire to acquire the remaining interest in due course.’ National Grid shares began trading in London on Wednesday on the up, rising 1.9% to 1,032.50 pence each. In Sydney, Macquarie shares closed up 1.2% to A$183.90 each. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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