Back in March 2021, National Grid announced its intention to initiate the sale of a majority stake in NGG.
On 27 March 2022, the Company announced that it has agreed to sell a 60% equity interest in NGG to a consortium (the ‘Consortium’) of long-term infrastructure investors (the ‘Transaction’).
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. The Transaction forms part of National Grid’s strategic pivot towards electricity.
Following the Transaction, National Grid will own a 40% minority equity interest in NGG via a new holding company called ‘GasT TopCo’. National Grid has entered into an option agreement with the Consortium for the potential sale of the remaining 40% of equity in GasT TopCo (known as the ‘Further Interest’). The option may 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). National Grid will provide more information if the option is exercised.
Completion of the Transaction will be subject to certain antitrust and regulatory conditions. Subject to these clearances, National Grid expects that the Transaction will complete in the second half of calendar year 2022.
In terms of what this means for Section B of the Scheme which is sponsored by NGG, the Trustee has engaged with National Grid on this since the intention to sell a majority stake in NGG was announced in March 2021. The Trustee has worked closely with the Trustee’s independent professional advisers to monitor and assess the situation in the context of fulfilling the Trustee’s duties and legal obligations, and to ensure Section B members’ benefits remain safe, secure and well-funded. The Trustees will communicate more with Section B members as the transaction progress and more information becomes available.
This news has no impact on the payment of members’ pensions which continue to be paid on the same date, in the usual way.
More information about the Company’s sale of NGG can be found on the National Grid website.