National Grid sells 60% stake in NGG

Utilities company National Grid has agreed to sell a 60% equity interest in its UK gas transmission and metering business to a consortium of long-term infrastructure investors.

National Grid said on Monday that will receive approximately £2.2bn in cash for its NGG unit from a consortium made up of Macquarie Asset Management and British Columbia Investment Management Corporation. National Grid will also receive approximately £2.0bn from additional debt financing at completion.

Following the transaction, National Grid will retain a 40% minority equity interest in NGG via a new holding company called GasT TopCo but stated it had also entered into an option agreement with the consortium for the potential sale of the remaining 40%.

Chief executive John Pettigrew said: "Today's announcement is a strong result for all our stakeholders, including employees and customers. The consortium has a long-term commitment to the UK with significant experience in owning and operating infrastructure assets. I look forward to our partnership and continuing to deliver safe and reliable gas service at the least cost to consumers."