The sale is a part of UK-based utility’s effort to focus on higher-growth operations.
The Consortium comprises Macquarie Infrastructure and Real Assets (MIRA), Allianz Capital Partners, Hermes Investment Management, CIC Capital, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure /International Public Partnerships.
National Grid CEO John Pettigrew said: “Today’s announcement follows a highly competitive sale process.
“On completion, National Grid’s portfolio will be rebalanced towards higher growth assets, whilst maintaining a strong balance sheet and supporting our sustainable dividend policy.”
NGGD owns and operates four regulated gas distribution networks which serve nearly 11 million households and businesses across the UK.
Upon completion of the deal, National Grid plans to provide £4bn of net proceeds to shareholders and utilize for share buy-backs.
Additionally, at least 75% of the net proceeds will be returned through a special dividend in Q2 of 2017, National Grid said.
The transaction, which is subject to approval from the European Commission, is planned to be completed on or before 31 March 2017.
National Grid said that consortium is also considering additional 14% stake in the gas distribution asset at a later stage.
On behalf of the consortium, MIRA global head Martin Stanley said: “This is a well-established business and we are confident that as investors we can continue to provide both high quality infrastructure for the UK and appropriate risk-adjusted returns for investors.”
Image: National Grid’s UK gas distribution business serve nearly 11 million households and businesses. Photo: courtesy of tuelekza/FreeDigitalPhotos.net.
