UK’s National Grid to sell 60% stake in gas unit to Macquarie, BCI

Industry:    

Britain’s National Grid said on Sunday it would sell a 60% stake in its British gas transmission and metering business to Australia’s Macquarie Asset Management and British Columbia Investment Management Corporation as it shifts towards electricity.

The deal implies an enterprise value for the unit of about 9.6 billion pounds ($12.7 billion), the company said in a statement.

Macquarie said its investment will ensure the transmission system will play a leading role in delivering the UK’s net-zero by 2050 target, by supporting hydrogen’s role in the energy mix.

National Grid will receive about 2.2 billion pounds in cash and about 2 billion pounds from additional debt financing following completion of the deal.

“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,” John Pettigrew, chief executive officer of National Grid said.

print
Source: