National Grid plc (LON:NG.) has today announced that it has entered into an agreement with Quadgas Investments Bidco Limited for the potential sale of its remaining 25% equity interest in Quadgas HoldCo Limited, the holding company for Cadent Gas Limited.
The potential sale is at the option of National Grid or Quadgas to complete at any time between 1 March 2019 and 31 October 2019, subject to no less than six months’ prior written notice and satisfaction of customary regulatory conditions.
The cash proceeds from the potential sale, excluding dividends received up to 31 March 2019 and certain other adjustments, would be approximately £1.2 billion.
If the sale is completed for this 25% interest, as well as for the 14% option announced in March 2017, the proceeds for both transactions are expected to be retained for reinvestment in the business.
The potential sale will allow National Grid plc to continue to rebalance its business towards a portfolio that delivers attractive asset growth of between 5% to 7%.
At 31 March 2017, on completion of the initial 61% equity disposal, the regulated asset value of the Gas Distribution business was £9.0 billion and total debt, including mid-co debt, was £7.7 billion.
