The sale of the assets, said to be worth in the region of £10 billion, “will realise some of the value we have created for our shareholders”, the company said in its first half financial results on Tuesday morning.
The announcement confirms speculation in the national press over recent months.
According to weekend reports talks for the multi-billion pound deal are at an early stage, and no financial advisor has yet been appointed. But unnamed sources told the Sunday Times that Canadian pension funds and Asian sovereign wealth funds have been identified as potentially interested parties.
The sale is expected to bolster the company’s already strong asset base profile, in a boon for shareholders.
The transmission operator posted a 22 per cent increase in its earnings per share over the first half of this financial year, beating analyst expectations by 14 per cent.
Jefferies analyst Peter Atherton said the better than expected result for shareholders follows a £181 million year-on-year increase in the profitability of the firm’s ‘other activities’.
This was driven by a share exchange gain in the US of £49 million, reduced US corporate costs of £67 million and increased UK property sales of £35 million.
Overall the company reported a 14 per cent increase in operating profit. H1 2015 adjusted operating profits came in at £1.83 billion compared to £1.61 billion in first half of 2014.
Outgoing chief executive Steve Holliday said the company remains “on track” to deliver good performance over the rest of the year, while the gas asset disposal will deliver strong shareholder returns.
“Following a sale, National Grid’s portfolio of businesses will have a higher asset growth profile and will remain well positioned to deliver strong returns and a sustainable, growing dividend,” he said.
Holliday will be replaced by current UK executive director John Pettigrew next summer.