National Grid Share Discussion Threads

[beckers2008] 18/3/2021 10:34

It seems that the large stakeholders are backing JP, that's what really matters, pleasing to see NG forging ahead with an acquisition that strengthens the business.
Anywhere under £9 with the positive dividend commitment is compelling for Pension funds.
Interesting to see the analyst's opinion later.

[utyinv] 18/3/2021 10:15

Makes sense now why shareholders are invited by NG to a COPT26 web conference next week.

[eaaxs06] 18/3/2021 10:14

Nailed the double bottom of 805.4p from 26/2.

A bad start to the day, but looking more positive now.

Good luck everyone, Sid.

[skinny] 18/3/2021 09:57

Together these transactions will:

-- strategically pivot National Grid's UK portfolio towards electricity. The proportion of the Group's assets in electricity will increase from c.60% to c.70%;

-- strengthen National Grid's long-term growth outlook by ensuring a significant scale position in electricity distribution through the acquisition of WPD, the UK's largest electricity distribution business. Electricity distribution is expected to see a high level of asset growth as a result of the ongoing energy transition;

-- significantly enhance National Grid's central role in the delivery of the UK's net zero targets, given the complementary nature of transmission and distribution, providing benefits for customers;

-- deliver shareholder value as the transactions are expected to be significantly earnings accretive from year one, generate a return in excess of National Grid's cost of capital and, taken together with the proposed NGG Sale, continue to be earnings accretive in the longer term;

-- underpin National Grid's 5 to 7% asset growth target for longer, further supporting National Grid's updated dividend policy to deliver annual dividend per share growth in line with UK CPIH inflation, while expecting to maintain its current overall strong investment grade credit rating;

-- maintain the Group's geographic and regulatory diversity, with c.40% of the Group assets in the US after the sales of NECO and stake in NGG;

-- generate attractive shareholder value through the sales of NECO and a majority stake in NGG; and

-- ensure management continuity and focus: the CEO and CFO of WPD will lead the UK distribution business as part of the enlarged Group. National Grid, recognising the importance of WPD to the communities it serves, intends to maintain the WPD headquarters in Bristol and offices in other key locations.

Completion of the WPD Acquisition, which will be funded by fully committed bridge facilities, is expected to occur within the next four months and completion of the NECO Sale is expected to occur before the end of the first quarter of 2022. National Grid expects to launch the sale process for NGG in the second half of this year and complete the sale approximately a year later".

[poikka] 18/3/2021 09:52

"National Grid expects to launch the sale process for NGG in the second half of this year and complete the sale approximately a year later.

"Given the strategic nature of its business coupled with its central position in a transition towards a hydrogen economy, it will continue to play a vital role in the UK's energy system. We expect strong interest when the sale process begins, likely to be in the second half of this year," Pettigrew said."

So if there's going to be a "transition towards a hydrogen economy", why are they flogging more of it?

I guess it's because they believe it'll be a smaller part of energy supply.

My head hurts.

[pierre oreilly] 18/3/2021 09:43

It requires no skill, expertise, experience or knowledge to call for anything. In fact, the less knowledge of something the easier it is to call for changes.

[saltaire111] 18/3/2021 09:36

How is the CEO still in his job?

Look at the share price going nowhere (but down) under his watch...

[pierre oreilly] 18/3/2021 09:06

It doesn't matter what Ng wants. Ng does what the government wants, implementing their energy strategy. I think the days are long gone when Ng or cerl or cegb advise the gov on energy issues - civil servants now 'advise' Ng on how the grid should be run.Above applies to electricity, no idea about gas. But I expect Ng see green gas initiatives presenting insurmoutable issues they could do without.

[nakedmolerat] 18/3/2021 08:56

NG want to move into green, market unsure about this and what it means. Failed experiment to merge Transco/lettace/lattice or whatever it was called with NG and also to move into the USA.

[ygor705] 18/3/2021 08:47

This is a very large shift in NGs strategy that, to my mind, has not been particularly well sign-posted the Board. It will be interesting to read what the industry's specialists think about it. It also suggests that there is not a great future for gas in the UK if the historic owner of the network wants to sell it off. There is talk of mixing hydrogen with natural gas to reduce emissions - but this is clearly to technical for NG to promote. The great British public has yet to wake up to the greening of gas and what it means for the pound in their pocket. When they do, politicians may well have to scamper for cover.

[utyinv] 18/3/2021 08:34

Bigger company, larger remuneration for BoD’s

Think they want to take advantage of Boris’ Green Energy revolution. But would have liked them to have challenged and won the case against Ofgem regarding the derisory ROE first.

[dartboard1] 18/3/2021 08:26

Guess management wants the story of the shift from old fuels to electrification/EV ... they can put pictures of windmills now throughout the annual report and get an esg score... notwithstanding gas is cleaner than wind/solar if you count the whole life cycle of infrastructure

[spacecake] 18/3/2021 08:24

"Make you wonder what the big strategy is."

I hope it's not to scare the shareholders !

[poikka] 18/3/2021 08:15

"Net debt of the WPD Group at 28 February 2021 was GBP6,413 million."

Make you wonder what the big strategy is.

[poikka] 18/3/2021 08:11

PPL's done well out of it!

[dartboard1] 18/3/2021 08:03

Market unimpressed

[wskill] 18/3/2021 07:55

Why no warranty with this acquisition and being replaced with an insurance paid by whom the vendor or NG. Hopefully proper due diligence has been performed and not just a paper exercise.

But on the face of it properly managed might be all right.

[bountyhunter] 18/3/2021 07:42

From today's news:

...deliver shareholder value as the transactions are expected to be significantly earnings accretive from year one, generate a return in excess of National Grid's cost of capital and, taken together with the proposed NGG Sale, continue to be earnings accretive in the longer term;

[skinny] 18/3/2021 07:16

.




Proposed acquisition of Western Power Distribution and strategic portfolio repositioning

National Grid plc ("National Grid" and together with its subsidiary undertakings, the "Group") today announces that it has agreed to acquire PPL WPD Investments Limited (together with its subsidiary undertakings, the ("WPD Group")), the holding company of Western Power Distribution ("WPD"), the UK's largest electricity distribution business, from PPL WPD Limited, a subsidiary of PPL Corporation ("PPL") (the "WPD Acquisition") for an equity value of GBP7.8 billion and National Grid has agreed to sell The Narragansett Electric Company ("NECO") to PPL Energy Holdings, LLC, also a subsidiary of PPL, for an equity value of US$3.8 billion (GBP2.7 billion) (the "NECO Sale", and together with the WPD Acquisition, the "Transactions").

In addition, National Grid announces that it will commence a process later this year for the sale of a majority stake in National Grid Gas plc, the owner of the national gas transmission system ("NGG") (the "NGG Sale").

Together these transactions will:

-- strategically pivot National Grid's UK portfolio towards electricity. The proportion of the Group's assets in electricity will increase from c.60% to c.70%;

-- strengthen National Grid's long-term growth outlook by ensuring a significant scale position in electricity distribution through the acquisition of WPD, the UK's largest electricity distribution business. Electricity distribution is expected to see a high level of asset growth as a result of the ongoing energy transition;

-- significantly enhance National Grid's central role in the delivery of the UK's net zero targets, given the complementary nature of transmission and distribution, providing benefits for customers;

-- deliver shareholder value as the transactions are expected to be significantly earnings accretive from year one, generate a return in excess of National Grid's cost of capital and, taken together with the proposed NGG Sale, continue to be earnings accretive in the longer term;

-- underpin National Grid's 5 to 7% asset growth target for longer, further supporting National Grid's updated dividend policy to deliver annual dividend per share growth in line with UK CPIH inflation, while expecting to maintain its current overall strong investment grade credit rating;

-- maintain the Group's geographic and regulatory diversity, with c.40% of the Group assets in the US after the sales of NECO and stake in NGG;

-- generate attractive shareholder value through the sales of NECO and a majority stake in NGG; and

-- ensure management continuity and focus: the CEO and CFO of WPD will lead the UK distribution business as part of the enlarged Group. National Grid, recognising the importance of WPD to the communities it serves, intends to maintain the WPD headquarters in Bristol and offices in other key locations.

Completion of the WPD Acquisition, which will be funded by fully committed bridge facilities, is expected to occur within the next four months and completion of the NECO Sale is expected to occur before the end of the first quarter of 2022. National Grid expects to launch the sale process for NGG in the second half of this year and complete the sale approximately a year later.

John Pettigrew, Chief Executive of National Grid, said:

"These transactions will be transformational for our UK portfolio. The acquisition of WPD is a one-off opportunity to acquire a significant scale position in UK electricity distribution. WPD has a high quality, fast growing asset base and an excellent track record of customer satisfaction, operational performance and financial returns. We have received a premium valuation for our Rhode Island business and I am confident that we will also deliver attractive shareholder value from the NGG Sale in due course.

In combination with the continued successful execution of our strategy in the US, establishing National Grid as the leading electricity transmission and distribution operator in the UK will strengthen our long-term growth prospects, enhance our role in the UK's energy transition and drive long term shareholder value. Following the completion of these transactions, we will continue to have a diversified portfolio of assets across the UK and US, with a strong asset growth profile that will further underpin our dividend policy for the longer term.

I'd like to take this opportunity to say a heartfelt thank you from all of us at National Grid to all the fantastic Rhode Island colleagues who have worked so hard over the years to deliver the energy needs for our customers across Rhode Island. I know that PPL will be an excellent steward for both NECO's customers and colleagues.

As we move our portfolio to higher growth assets, we have taken the decision to sell a majority stake in NGG. Given the strategic nature of its business coupled with its central position in a transition towards a hydrogen economy, it will continue to play a vital role in the UK's energy system. We expect strong interest when the sale process begins, likely to be in the second half of this year.

The acquisition of WPD brings great people and outstanding experience to National Grid and I am hugely excited about building the future together. Our vision for National Grid remains unchanged, to be at the heart of a clean, fair and affordable energy future. With increased exposure to the UK's electricity sector, these transactions enhance our role in the progress towards net zero, underpinning our core ambition which is to enable the energy transition for all. We look forward to constructive engagement with Ofgem and policymakers, on how best to achieve these common goals in the best interests of all our customers and wider stakeholders."

The WPD Acquisition is a Class 1 transaction under the Listing Rules and is therefore conditional upon the approval of shareholders at a General Meeting. Accordingly, National Grid will shortly publish a shareholder circular containing further details of the WPD Acquisition, a recommendation from its board of directors (the "Board"), and the notice of the General Meeting which is expected to be held by the end of April 2021. In addition, the Transactions are conditional on certain regulatory approvals and the NECO Sale is conditional on completion of the WPD Acquisition occurring.

The person responsible for arranging the release of this announcement on behalf of National Grid is Justine Campbell, Group General Counsel & Company Secretary.

[pander45] 04/3/2021 21:11

Good buy around this level imho

[bountyhunter] 04/3/2021 08:42

Looking more positive this morning; defensive qualities finally kicking in?

[bountyhunter] 04/3/2021 08:41

Yes BT still holds a monopoly on the vital last part of the connection to many homes although you now have Virgin and Toob with there own fibre going directly into a proportion of properties. It does seem crazy when each company has to lay it's own final connection to a home or be at the mercy of the BT monopoly. This will need to change surely. No wonder city pavements are such a mess.
Re NG's interest I guess that is limited to the backbone of the network where there should be plenty of money to be made.

[utyinv] 03/3/2021 22:11

Bounty been there before with Energis.

Energis failed because bt prohibited Energis to get the last link in the process ... access to the marshalling kiosks in order to get to customers.

Energis were never given access because BT just delayed, delayed and delayed sticking two fingers up to the regulator