UK power and gas transmission network operator National Grid Transco has announced plans to return £2 billion ($3.7 billion) to shareholders. The moves follow the sale of four gas distribution networks for £5.8 billion ($10.7 billion).
If the plans are approved, shareholders will receive one B share for every ordinary share and may then opt to receive a single dividend of 65p ($1.2) for each B share. Shareholders also have the option to sell the B shares to JP Morgan Cazenove for the same amount, free of dealing expenses or commissions, or hold the share for later sale at the same price.
The different options allow shareholders to mitigate the tax liability associated with the return.
Part of the proceeds from the sale will also be used to pay off debts bringing them down to around £10 billion ($18.5 billion) and a further £1.5 billion ($2.7 billion) will remain on the balance sheet to fund further acquisitions.