National Grid agrees UK distribution sale, to return cash to investors

LONDON, Dec (Shanghai: 600875.SS - news) 8 (Reuters) - Britain's National Grid (LSE: NG.L - news) has agreed to sell a 61 percent equity interest in its UK gas distribution business to a group of infrastructure investors that implies an enterprise value of around 13.8 billion pounds ($17.5 billion), it said on Thursday.

As part of the deal it plans to return 4 billion pounds of capital to shareholders.

On completion National Grid will receive a payment of 3.6 billion pounds in cash from the consortium and will own a 39 percent minority equity interest in a new holding company.

The Consortium comprises Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital (Other OTC: CGHC - news) and Amber Infrastructure Limited/International Public Partnerships.

($1 = 0.7908 pounds) (Reporting by Kate Holton; editing by Sarah Young)