London, 01 May 2018
Quadgas Investments BidCo Limited (‘Quadgas’), a consortium of long-term infrastructure investors, is pleased to announce it has entered into an agreement to potentially acquire the remaining 25% ownership interest in Cadent Gas (‘Cadent’) from National Grid plc (‘National Grid’).
The acquisition is at the option of National Grid or Quadgas (as applicable) to complete at any time between 1 March 2019 and 31 October 2019, subject to no less than six months’ prior written notice and satisfaction of customary regulatory conditions.
In March 2017, Quadgas announced that it had acquired a 61% interest in National Grid’s gas distribution networks. At the same time, Quadgas and National Grid announced that they agreed the potential future sale and purchase of an additional 14% interest in the networks. As part of the March 2017 transaction, Quadgas was also granted pre-emption rights over the residual 25% interest held by National Grid.
The proposed follow-on investment represents a deepening of Quadgas’ commitment to Cadent. Once this transaction is closed (subject to the aforementioned conditions), Quadgas will have a 100% ownership interest in Cadent.
About Cadent Gas
Cadent Gas is the largest gas distribution network in the UK, delivering gas to nearly 11 million households and businesses. It owns and operates 131,000km of gas pipelines across four regulated gas distribution networks that cover the East of England, North London, North West England and West Midlands. Cadent is regulated by Ofgem, the UK’s gas and electricity regulator.
Quadgas is a consortium of long-term infrastructure investors comprising of Macquarie Infrastructure and Real Assets (Europe) Limited on behalf of certain funds and entities managed by it, CIC Capital Corporation, which is a wholly owned subsidiary of China Investment Corporation, Allianz Capital Partners on behalf of the Allianz Group, Hermes Investment Management, Amber Infrastructure Limited/International Public Partnerships, Dalmore Capital and the Qatar Investment Authority.
Individually they have invested in a multitude of global projects in the regulated asset environment, including numerous gas assets such as Open Grid Europe, Gassled and NET4GAS, Czech Gas Networks, Thyssengas, Wales & West Utilities, and have a successful track record of investing in the UK’s largest critical infrastructure investments, including Tideway Tunnel, Heathrow, Thames Water and Porterbrook.