PressNewsFinancialsStakes and investments: Allianz invests in National Grid’s UK gas distribution network

Allianz invests in National Grid’s UK gas distribution network

Service & Contacts

Allianz Group Communications
Koeniginstr. 28
80802 Munich
Germany

Contact overview

Receive the latest Allianz news.

Newsletter

Follow Allianz in the social networks:

Facebook
Twitter
Google+
LinkedIn

  • Contact

  • Newsletter

  • Social Media

Quad Gas Group, a consortium of long-term infrastructure investors, today announces that it has entered into an agreement with National Grid plc to acquire a 61 percent shareholding in its four regulated gas distribution networks.
 

Allianz Capital Partners
London/Munich, Dec 08, 2016

These gas distribution networks cover the East of England, North London, North West and West Midlands, and distribute gas to approximately half of the country’s connected households through 130,000 km of gas pipeline. They represent approximately 14 percent of the total regulated energy infrastructure sector in Great Britain by regulated asset value and are regulated by Ofgem.

The consortium is made up of Macquarie Infrastructure and Real Assets (MIRA), CIC Capital Corporation, which is a wholly owned subsidiary of China Investment Corporation, Allianz Capital Partners, Hermes Investment Management, Qatar Investment Authority, Amber Infrastructure and Dalmore Capital.

The transaction is expected to complete in Q1 2017 following regulatory approval. The vendor, National Grid plc, an international electricity and gas company headquartered in the UK, will retain a 39 percent stake in National Grid Gas Distribution.

National Grid plc also announced today that they and the Consortium have expressed an interest in relation to the potential future sale and purchase of an additional 14 percent stake, on broadly equivalent financial terms to the Transaction. Further details will be announced if agreement is reached.

 

Christian Fingerle, Chief Investment Officer, Allianz Capital Partners, said:

“This business provides essential services to 11 million customers in the UK and we are committed to its sustainable development in the long term. The well-established regulatory framework and stable and predictable nature of the business make it an excellent fit with Allianz strategy of investing in core infrastructure assets on behalf of our millions of clients.”

 

Martin Stanley, Global Head of MIRA, said:

“This is a well-established business and we are confident that we as investors can continue to provide both high quality infrastructure for the UK and appropriate risk-adjusted returns for investors. MIRA has long standing operational experience in managing utilities and critical infrastructure in the UK, across Europe and around the world and we are committed to being a long term investor in and a responsible custodian of National Grid Gas Distribution”

 

Peter Hofbauer, Head of Infrastructure, Hermes Investment Management said:

“National Grid’s Gas Distribution Networks are strategic UK Infrastructure assets and are an excellent fit within our core investment strategy, which targets infrastructure businesses that deliver long-term predictable inflation-linked cash flows, with robust cash yield. We look forward to supporting the business in making its important contribution to the U.K. economy alongside our consortium partners Allianz Capital Partners, Dalmore Capital Limited, Amber Infrastructure, Macquarie Infrastructure and Real Assets, CIC Capital and Qatar Investment Authority and National Grid.”

 

Gavin Tait, Investment Director, Amber Infrastructure added:

“National Grid’s gas distribution business forms a core and essential part of the UK’s infrastructure base. The longstanding and transparent regulatory regime, combined with the assets' inflation linkage make the risk-adjusted returns attractive to the investors we advise.”

 

Alistair Ray, Partner and Chief Investment Officer, Dalmore Capital said:

“We are all experienced, long term investors in the UK’s critical infrastructure with a track record of delivering reliable services and operational outperformance. This is an attractive opportunity for our investors and is fully aligned with Dalmore’s investment strategy.”

Macquarie Capital and RBC Capital Markets acted as financial advisers to Quad Gas Group.

  Forward Looking Statement disclaimer

As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer:

 

  Press contact

Stefanie Rupp-Menedetter
Allianz Capital Partners                          
Phone +49 89 3800 2743
Send email

  More at allianz.com

Poll Position

Allianz-Poll Position
Sep 21, 2017 | Allianz SE

Few can deny that Chancellor Angela Merkel has benefited from Germany’s recent economic prosperity. But as elections near, it’s important to remember that measures are still required to enhance the country’s growth potential…

More...

New Leadership at Allianz Deutschland and Allianz Italia

Allianz-New Leadership at Allianz Deutschland. Klaus-Peter Röhler named CEO
Sep 19, 2017 | Allianz SE

The Supervisory Board of Allianz Deutschland AG today named Dr. Klaus-Peter Röhler as Chairman of the Management Board (CEO) and successor to Dr. Manfred Knof, effective January 1, 2018. The Allianz Italia Board of Directors  decided to appoint Giacomo Campora, 50, as CEO of Allianz Italia as of January 1, 2018.

More...

'Allianz Multinational' bundles expertise for international Property & Casualty insurance solutions

Allianz-'Allianz Multinational' bundles expertise for international Property & Casualty insurance solutions
Sep 19, 2017 | Allianz SE

Under the name “Allianz Multinational,” Allianz is bundling its expertise for international insurance solutions from the property and casualty insurance sectors across the Group. Companies operating on a cross border basis – regardless of size – can access international insurance products tailored to their unique market and risk profiles through a central source. 

More...
More...