Power network giant National Grid (NG.) is selling its remaining 25 per cent stake in Cadent Gas. The sale is expected to generate proceeds of £1.2bn for the group, excluding dividends and other adjustments.
The market was unsurprised by the news, with the shares rising less than 1 per cent following the announcement. The group already sold a 61 per cent stake in National Grid Gas Distribution – as the business was previously known – in March 2017 for £4bn, which was returned to shareholders through a special dividend and share buyback.
Last year the group also entered an agreement to sell a 14 per cent stake at any point between the beginning of March and the end of October next year. The proceeds from the this and the latest 25 per cent, are expected to be retained for investment in the business.
