Shares drop after National Grid disposal
Shares in Solihull-based National Grid have dropped slightly after the company announced it would sell its metering division for nearly £275m.
After announcing plans to dispose of its Utility Metering Services business to Macquarie Bank, shares in National Grid fell 1.02 per cent.
At close yesterday, each share had dropped in valueby £6.50 from £631.
The electricity and gas giant sold the service, which trades as Onstream, for a total of £274.3m. The unconditional sale is expected to complete shortly, confirmed National Grid.
Onstream is a non-regulated gas and electricity metering business and represents about 9 per cent of National Grid's total UK metering activities.
National Grid said that the sale "provides a clean exit from the business at an appropriate juncture in its development and delivers good value for our investors".
The cash proceeds from the sale will be used within National Grid to fund the continuing investment programme.
