National Grid PLC (LSE:NG.) has struck a deal to further sell down its ownership of the UK's gas network to just 20%, for a price of £700mln.
The FTSE 100 group said is selling half of its current 40% stake in its UK gas transmission and metering business to a consortium made up of Australian infrastructure investment giant Macquarie Asset Management and British Columbia Investment Management Corporation (BCIMC).
Macquarie and BCIMC are already the majority owner, having bought a 60% stake last year for £4.2bn, with the deal completed in January.
Regulatory clearance will be needed, the company said.
Last year, the UK government reviewed the consortium's takeover of what is a key part of the country’s gas infrastructure under the National Security and Investment Act.
National Grid said today that it has also offered an option for the consortium to buy the remaining 20% during a short window from May to the end of July next year.
It said the terms of the sale, which is expected to complete in the second half of this year, are on "equivalent financial terms" to the first transaction.
John Pettigrew, chief executive of National Grid, said: "We're pleased to reach the next milestone in this process, and we"ll continue to work closely with the consortium."
National Gas, which had gross assets valued at £6.4bn at the end of January, generated a profit before tax of £320mln for the year to March.
There was criticism of the original purchase by Macquarie, which also owns UK water companies Thames Water and Southern Water, where its ownership has been the subject of controversy for significant debt accumulation and sewage discharge.