UK electricity and gas utility firm National Grid has reached an agreement to divest its remaining 25% equity interest in Cadent Gas to Quadgas Investments Bidco for around £1.2bn.
Quadgas Investments Bidco is a consortium of long-term infrastructure investors, including Macquarie Bank, Allianz Capital Partners, CIC Capital, Hermes Investment Management, Amber Infrastructure/International Public Partnerships, Dalmore Capital and the Qatar Investment Authority.
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Through the transaction, National Grid intends to rebalance its business towards a portfolio that delivers asset growth of between 5% and 7%. The parties will complete the transaction between March and October next year.
The development comes after Quadgas acquired a 61% interest in National Grid’s gas distribution networks in March last year. A further agreement has been reached to allow Quadgas to acquire an additional 14% interest in these networks.
Quadgas has also been granted pre-emption rights over the residual 25% interest.
National Grid plans to reinvest the proceeds from the transaction back into the business.
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By GlobalDataPreviously known as National Grid Gas Distribution, Cadent delivers gas to around 11 million consumers.
