National Grid, the U.K. electricity-transmission network operator, announced on Wednesday that it has reached an agreement to sell an additional 20% interest in its U.K. gas transmission business, National Gas. The sale, expected to generate approximately £700 million ($912.5 million) in proceeds, will be made to the existing majority owners of National Gas.

The transaction will be conducted with a consortium of long-term infrastructure investors led by Macquarie Asset Management, under terms that are financially equivalent to the original 60% transaction completed in January. The sale is subject to regulatory conditions and is anticipated to be finalized in the second half of 2023.

In addition, National Grid has granted the consortium a new option to purchase the remaining stake. This option allows the consortium to exercise their right to acquire all or part of the remaining 20% on the same terms as the initial transaction between the beginning of May and the end of July 2024.

Once the sale is complete, National Grid intends to utilize the total proceeds of approximately £700 million for general corporate purposes, including debt repayment.

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