UK: Chinese billionaire looking to buy National Grid

Asian billionaire Li Ka-shing is assembling a bid for a majority stake in the gas distribution business of National Grid, the UK electricity network operator at the closely-watched auction that is expected to value the business at £11 billion including debt.

The National Grid stake sale is set to be one of the largest infrastructure deals in the UK in recent years. It will also be a major test of the new conditions on foreign investment in UK infrastructure set by Theresa May’s government last week.

First-round bids for the 51 per cent stake in the business, which distributes gas to nearly 11 million customers around the UK were due by Friday, people involved in the process said.

The auction has attracted interest from other infrastructure investors and sovereign wealth funds.

One consortium participating in the auction is led by Canada Pension Plan Investment Board, which has put together a group that includes sovereign wealth funds from Kuwait and Abu Dhabi.

Another is led by Macquarie and includes backing from Allianz, the German insurer, Dalmore Capital and China Investment Corporation, China’s sovereign wealth fund.

Full Content: The Financial Times

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