LONDON: Britain’s electricity network operator, has put a majority stake in its UK gas distribution business up for sale in a deal that could raise billions of pounds for the company.
The group said the disposal would “rebalance National Grid’s portfolio to deliver a higher asset growth profile” while maintaining “sustainable” dividend growth
The gas distribution arm, which analysts estimate could be worth £11bn, could attract interest from big infrastructure investors and sovereign wealth funds keen for stable returns in an environment where yields on bonds and gilts have slumped.
The business serves nearly 11m customers in the Midlands, north-west and eastern England and north London.
Steve Holliday, National Grid chief executive, said on Tuesday that “the sale of a majority stake will realise some of the value we have created for our shareholders”.
The process would begin in the second half of this year and 2016, with completion expected in early 2017, the company said.
