British power and gas transmission network operator National Grid has entered into an agreement to sell a 61% stake in its gas distribution business in the United Kingdom, NGGD, to a consortium of infrastructure investors, comprising Macquarie Infrastructure and Real Assets (MIRA), Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure.
The transaction, that was announced in November 2015, amounts to approximately £13.8bn (€16.2bn). National Grid will retain 39% in a new holding company for NGGD, named GasD HoldCo, and will receive a cash payment of £3.6bn (€4.2bn), plus £1.8bn (€2.1bn) from additional debt financing. Under the terms of the agreement, National Grid could later sell an additional 14% in GasD HoldCo to the consortium, on broadly equivalent financial terms.
The 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 to complete the transaction by 31 March 2017.
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