LONDON: Britain’s National Grid says it will sell a 60% stake in its British gas transmission and metering business to Australia’s Macquarie Asset Management and British Columbia Investment Management Corp, as it shifts towards electricity.

       The deal implies an enterprise value for the unit of about ￡9.6bil (US$12.7bil or RM53.4bil), the company said in a statement.

       Macquarie said its investment will ensure the transmission system will play a leading role in delivering the UK’s net-zero by 2050 target, by supporting hydrogen’s role in the energy mix.

       National Grid will receive about ￡2.2bil (RM12.2bil) in cash and about ￡2bil (RM11.1bil) from additional debt financing following the completion of the deal.

       “This transaction further enhances our role in delivering the UK’s energy transition, pivots our portfolio towards electricity, whilst ensuring the security of the energy supply for the country,” John Pettigrew, chief executive officer of National Grid said.

       The company’s announcement comes as Europe’s tight gas market has sent wholesale energy prices soaring, exacerbated by the Russian invasion of Ukraine.

       Multiple energy suppliers in Britain have gone out of business since last September as prices in the country have rocketted. — Reuters