National Grid gas network bid group lines up Balfour Beatty chairman to bolster approach as Borealis pulls out
A consortium planning to bid for National Grid [LON:NG]’s gas networks has asked Philip Aiken, an energy-sector veteran, to head their approach, The Sunday Times reported. Aiken, currently chairman of Balfour Beatty [LON:BBY] and Aveva [LON:AVV], has been approached by the group including the Universities Superannuation Scheme, Canada Pension Plan Investment Board, Hermes and the Abu Dhabi and Kuwaiti sovereign wealth funds, the report said.
National Grid is seeking to offload 51% of the four gas-distribution operations it owns, worth GBP 10bn (USD 13.3bn), but may increase the stake for sale if appetite is strong, the item reported.
According to City sources cited in the piece, the group which approached Aiken had included Canada-based Borealis but the pension fund withdrew amid fears of too much reliance on assets in the UK.
A rival consortium for the National Grid gas pipelines is headed by Australia-based Macquarie [ASX:MQG], with China Investment Corporation, the German insurance group Allianz [ETR:ALV] and the fund managers Amber Infrastructure and Dalmore Capital, the report said.
State Grid, the Chinese power goliath, is also considering making a bid, the City sources said.
Morgan Stanley, Barclays and Robey Warshaw are managing the auction for National Grid, which is thought likely to be tied up early in 2017, the item reported. First-round bids are scheduled for the end of this month, the report said.