National Grid Sells Majority Interest in UK Gas Distribution Pipelines
National Grid has entered into an agreement to sell a 61% equity interest in its UK gas distribution business to a consortium of long-term infrastructure investors. The consortium comprises Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited/International Public Partnerships.
The terms of the transaction imply an enterprise value for National Grid’s UK gas distribution pipelines of approximately £13.8 billion. In consideration for the sale of its equity interest, on completion, National Grid will receive a payment of £3.6 billion in cash from the consortium (subject to certain completion adjustments) and will own a 39% minority equity interest in a new holding company for the pipelines. National Grid will also receive £1.8 billion from additional debt financing.
Completion of the transaction is conditional on the receipt of merger clearance from the European Commission. Subject to satisfaction of this condition, National Grid expects that the transaction will complete on or prior to March 31, 2017.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
- Enbridge Sells $511 Million Stake in Westcoast Pipeline to Indigenous Alliance
Comments