National Grid completes £4.2bn disposal of metering business
National Grid has agreed a £4.2bn deal to sell a 60% equity interest in its UK gas transmission and metering business (NGG) to a consortium made up of Macquarie Asset Management and British Columbia Investment Management Corporation (BCI), one of Canada’s largest institutional investors.
Following the deal, National Grid will own a 40% minority equity interest in NGG via a new holding company called GasT TopCo. It will also receive approximately £2bn from additional debt financing at completion.
National Grid has also entered into an option agreement with the consortium for the potential sale of the remaining 40% of equity in GasT TopCo, as long as it is between 1 January 2023 and 30 June 2023.
John Pettigrew, chief executive of National Grid, said: “This transaction further enhances our role in delivering the UK’s energy transition, pivots our portfolio towards electricity, whilst ensuring the security of the energy supply for the country. Alongside our plans to invest up to £35 billion in energy infrastructure over the next five years, the series of transactions announced last March will strengthen our long-term growth prospects, and drive long-term value for shareholders.
“Today’s announcement is a strong result for all our stakeholders, including employees and customers. The consortium has a long-term commitment to the UK with significant experience in owning and operating infrastructure assets. I look forward to our partnership and continuing to deliver safe and reliable gas service at the least cost to consumers. I would also like to thank my colleagues in Gas Transmission and Metering for their hard work that has helped us reach this important milestone.”
National Grid says it will to use the proceeds the deal to pay down a bridge financing facility that was drawn as part of the acquisition of WPD.
