NGG - National Grid sells U.K. gas transmission unit stake in $5.5B deal

National Grid (NYSE:NGG) agrees to sell 60% of its U.K. gas transmission business to Macquarie Asset Management and British Columbia Investment Management in a deal that values the unit at £9.6B ($12.7B), Bloomberg reports. The utility says it will get ~£2.2B ($2.9B) in cash and receive £2B ($2.6B) from additional debt financing when the deal is completed; it will hold its 40% stake in the unit through a new holding company called GasT TopCo, with an option to sell that stake in the first half of 2023. National Grid's gas transmission business is one of the largest in the U.K. and includes a 7K km pipe network across the country. National Grid has been seeking to cut its greenhouse gas emissions to net zero by 2050; as part of its push, last year it agreed to buy PPL Corp.'s U.K. electricity business for £7.8B.

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National Grid sells U.K. gas transmission unit stake in $5.5B deal