National Grid has announced plans to sell its remaining stake in Cadent Gas, the company that acquired and runs its gas distribution networks.
The network company retained 25% of Cadent when the remainder was sold to the Quadgas Group at the end of 2016. Now it has agreed the potential sale of that stake to Quadgas Investments Bidco. The potential sale is at the option of National Grid or Quadgas (as applicable) to complete at any time between 1 March 2019 and 31 October 2019, subject to 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. National Grid said if the sale was 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.
National Grid said it was continuing to rebalance its business towards a portfolio that delivers attractive asset growth of between 5% and 7%.