On Thursday 8 December we announced to the London Stock Exchange that National Grid has agreed to sell a 61% stake in the UK Gas Distribution business.
The winning consortium – including Macquarie Infrastructure and Real Assets (MIRA), China Investment Corporation Capital, Allianz Capital Partners, Hermes Infrastructure, Qatar Investment Authority, Amber Infrastructure and Dalmore Capital – collectively have a long track record investing in the UK’s critical infrastructure; delivering reliable services and strong performance in regulated industries.
UK Gas Distribution is a strong business with a great future, so it was important to us to find a majority owner who recognises the value and great work of our colleagues.
And, of course, National Grid will still own 39% of UK Gas Distribution and will continue to have a significant stake in the business and its ongoing success.
There is no immediate impact from this announcement. Since October, UK Gas Distribution has been operating as a separate business, with separate systems and processes now in place.
UK Gas Distribution and the retained organisation will continue to reliably and safely deliver for our customers. However, we can now start the work to ensure Gas Distribution has a smooth transition. And we expect the sale to be completed in March 2017, subject to EU merger clearance.
At National Grid we take the important role we play in people’s daily lives very seriously. We bring energy to life. As a business, we don’t just have an obligation to our investors and employees, we also have an important responsibility to the people and communities we work with.
That is why we will be putting £150m from this sale to one side and will be working with Ofgem to find the best way to use that money for the benefit of consumers.
This is an important milestone and reflects the hard work and dedication so many of you have given to the separation and sale process. Thank you for your professionalism and for maintaining your focus on delivering your day job safely during this time of change for our business.