The race is on. News this week that Canadian pension funds OTPP and Borealis are lining up a bid for National Grid’s gas distribution businesses fired the starting pistol on a race that could end in a record valuation. As analyst Nigel Hawkins outlines on page 19, gas distribution assets may not be at the most glamorous end of the utility market, but they are prized by investors for their steady returns. With National Grid’s remaining gas distribution assets having a regulated asset value of £8.5 billion, a premium of 30 per cent could see a final valuation north of £11 billion (although National Grid is planning to hold on to a minority stake).
Leader: bidders flock as gas future looks bright
