Linklaters advises National Grid on its sale of a majority stake in their gas transmission and metering business

Linklaters has advised National Grid on the sale of a majority stake in its UK gas transmission and metering business (“NGG”) to a consortium of long-term infrastructure investors for £4.2bn. The terms of the Transaction imply an enterprise value for NGG of approximately £9.6 billion.

The Consortium is comprised of Macquarie Asset Management, a global asset manager and the world’s largest infrastructure manager, and British Columbia Investment Management Corporation, one of Canada’s largest institutional investors.

This is an important step in National Grid’s previously announced strategy to pivot its portfolio towards electricity and reinforce its role in enabling the UK to reach its net zero targets, while maintaining security of supply for the country. It also strengthens their long-term growth prospects and drives long-term value for shareholders.

National Grid has also entered into an option agreement with the Consortium for the potential sale of the remaining 40% of equity, the option may only be exercised by the Consortium between 1 January 2023 and 30 June 2023 (subject to change depending on the timing of the closing of the Transaction). If the option is exercised, the consideration for the Further Interest is expected to be paid in cash to National Grid on broadly similar terms to the Transaction.

National Grid was advised by relationship partner Charlie Turner leading on the deal, alongside star managing associates Amy Barker and Fionna Ng. The team was also supported by our Antitrust & Foreign Investment and Finance practices, led by partners Natura Gracia and Lizzie Johnson respectively.