Business
Sale of majority interest in NGGT and Metering
Sale of majority interest in NGGT and Metering.
About this update from National Grid Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1479G\n National Grid PLC\n 27 March 2022\n \n \n \n \n National Grid PLC\n 27 March 2022\n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n FOR IMMEDIATE RELEASE\n Sale of majority interest in NGGT and Metering\n National Grid plc (\"National Grid\") today announces that it has agreed to sell a 60% equity interest in its UK gas transmission and metering business (\"NGG\") to a consortium (the \"Consortium\") of long-term infrastructure investors (the \"Transaction\"). The Consortium is comprised of Macquarie Asset Management, a global asset manager and the world's largest infrastructure manager, and British Columbia Investment Management Corporation (\"BCI\"), one of Canada's largest institutional investors. As announced in March 2021, the Transaction forms part of National Grid's strategic pivot towards electricity and follows last year's acquisition of Western Power Distribution (\"WPD\"), the UK's largest electricity distribution business, and announced sale of The Narragansett Electric Company (\"NECO\") in the US.\n The terms of the Transaction imply an enterprise value for NGG of approximately £9.6 billion[1]. On completion, National Grid will receive approximately £2.2 billion in cash consideration (subject to customary completion adjustments)[2]. Following the Transaction, National Grid will own a 40% minority equity interest in NGG via a new holding company called \"GasT TopCo\". In addition, National Grid will also receive approximately £2.0 billion from additional debt financing at completion. As at March 2022, NGG's regulated asset value is estimated to be approximately £6.6 billion and its net debt is estimated to be approximately £3.8 billion.\n National Grid has also entered into an option agreement with the Consortium for the potential sale of the remaining 40% of equity in GasT TopCo (the \"Further Interest\"). The option may be exercised by the Consortium between 1 January 2023 and 30 June 2023 (subject to change depending on the timing of the closing of the Transaction). If the option is exercised, the consideration for the Further Interest is expected...