Macquarie Asset Management and U.S.-based Federated Hermes are exploring the potential sale of a combined 1.3 billion pound ($1.64 billion) stake in UK gas network operator Cadent, a source close to the matter told Reuters.
The asset management division of Macquarie Group manages a more than 26% stake in Cadent and is in early stage talks to sell a 5% holding while Federated Hermes is looking to reduce its 13% stake to 8.4%, the source said.
The proposed sale, first reported by the Financial Times, comes as Britain looks to phase out use of natural gas as part of efforts to achieve net zero carbon emissions by 2050.
Federated Hermes and Cadent did not respond to a request for comment outside office hours.
Source: Reuters.com