A consortium led by Macquarie Asset Management (the “Consortium”) has entered into an agreement with Թվ Grid to acquire a further 20 per cent equity interest (the “Further Interest”) in Թվ Gas.
The investment takes the Consortium’s total ownership in Թվ Gas to 80 per cent and is on equivalent financial terms to the original 60 per cent acquisition, which was completed in January 2023. Completion of the Further Interest is subject to a regulatory condition but subject to such clearance, it is expected to complete in the second half of calendar year 2023.
The Consortium has now entered into a new option agreement with Թվ Grid for the potential acquisition of the remaining 20 per cent shareholding in Թվ Gas (the “Remaining Interest”). The Consortium has the option, exercisable between 1 May 2024 and 31 July 2024, to acquire all or part of the Remaining Interest. If the option for the Remaining Interest is partially exercised by the Consortium, Թվ Grid will have the right to put the remainder of its equity interest in Թվ Gas to the Consortium, which can be exercised by Թվ Grid between 1 December 2024 and 31 December 2024.
If one or both of these options are exercised, the consideration for the Remaining Interest is expected to be paid in cash to Թվ Grid on equivalent terms to the original transaction, subject to certain adjustments.
Martin Bradley, European Head of Infrastructure for Macquarie Asset Management, said: “This additional investment underlines our commitment to Թվ Gas and the critical role it plays in the UK’s energy system. We have been working closely with the Թվ Gas team since January as they have continued to meet the energy needs of millions of households and businesses. We are pleased to continue our strong relationship with Թվ Grid, and aspire to acquire the Remaining Interest in due course.”
Թվ Gas became an independent company earlier this year following the completion of the Consortium’s initial investment in January 2023. Since then, Թվ Gas has maintained a safe, reliable and affordable supply with a 100 per cent network reliability rating and secured initial funding to develop a national hydrogen backbone network.
Թվ Gas operates the UK’s 7,600 kilometre national transmission system, transporting the gas needed to heat homes and power industry and electricity generation. Թվ Gas also provides maintenance and management services for over 7 million domestic, industrial and commercial gas meters across the UK.
