National Grid Is Said to Pick Banks for $7 Billion Gas Asset Sale
(Bloomberg) -- National Grid Plc has hired banks for the sale of a majority stake in its gas grid business, turning to the advisers that last month helped seal its biggest-ever acquisition, people familiar with the matter said.
Barclays Plc, Goldman Sachs Group Inc. and Robey Warshaw LLP will assist the London-listed utility on the sale of a stake that could be valued at as much as 5 billion pounds ($6.9 billion), the people said, asking not to be identified as the information in private.
The banks are helping with internal preparations for the sale, with a formal process yet to begin, the people said. A stake in the gas asset could attract large infrastructure funds and financial investors seeking steady and stable returns, according to the people.
Representatives for Barclays, Goldman Sachs, National Grid and Robey Warshaw declined to comment.
In March, National Grid agreed to buy PPL’s U.K. electricity distribution business for 7.8 billion pounds as part of efforts to prepare for a low-carbon future. The utility also announced its intention to sell the majority stake in its gas grid business, as the fossil fuel comes under increasing scrutiny from investors and activists.
The utility’s gas transmission business is one of the largest in the U.K. and includes a 7,000 kilometer pipe network across the country.
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