UK's National Grid sells stake in gas biz to Macquarie, BCI
National Grid has agreed to sell a 60% equity interest in its UK gas transmission and metering business to a consortium of Macquarie Asset Management and British Columbia Investment Management Corp (BCI), it said on March 27. The deal has an enterprise value of approximately £9.6bn ($12.7bn).
The UK firm will receive approximately £2.2bn in cash and about £2bn from additional debt financing at completion. Following the transaction, National Grid will own a 40% minority equity interest in the business via a new holding company called GasT TopCo. It has also entered into an option agreement with the consortium for the potential sale of the remaining 40% of the equity in GasT TopCo. The option may be exercised by the consortium between January and June 2023.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
National Grid’s gas transmission business includes a 7,660-km pipe network across the UK, among the largest gas transmission businesses in the country.
Macquarie in a separate statement said that if the UK’s net-zero by 2050 target is to be met, the country must have a next-generation transmission backbone to power homes and businesses with renewable energy. "Backed by our significant investment, the transmission system will play a leading role in making the network ready for this transition," it added.
The transaction is expected to be completed in the second half of calendar year 2022.