£1.2bn gas networks deal in the pipeline
National Grid has agreed a potential £1.2bn deal for its 25% stake in the holding company of gas network company Cadent Gas.
Quadgas, a consortium of long-term infrastructure investors, and National Grid both have an option to complete at any time between 1 March 2019 and 31 October 2019, if they give at least six months’ written notice and it is cleared by regulators.
National Grid said that if the sale is completed for this 25% interest, as well as for a 14% option announced in March 2017, the proceeds for both transactions are expected to be retained for reinvestment in the business.
“The potential sale will allow National Grid to continue to rebalance its business towards a portfolio that delivers attractive asset growth of between 5% to 7%,” said National Grid, in a statement to the stock market.
Quadgas originally bought 61% of the gas distribution networks in December 2016. Cadent operates four of the eight networks in Great Britain, managing the network in the North West, West Midlands, East of England and North London.
The Quadgas consortium is made up of Macquarie Infrastructure and Real Assets (MIRA), CIC Capital Corporation, Allianz Capital Partners, Hermes Investment Management, Qatar Investment Authority, Amber Infrastructure and Dalmore Capital.
