NGG National Grid Plc New

By Razak Musah Baba

LONDON--National Grid PLC (NG.LN) said it has agreed an option for the sale of a further 14% of its U.K. gas distribution business for about 0.8 billion pounds ($1 billion) following the completion Friday of an earlier deal for 61% to the same consortium.

In December last year, the utility firm announced the sale of the 61% stake to a consortium of long-term infrastructure investors in a deal that values the unit at about GBP13.8 billion pounds, and will return GBP4 billion of the proceeds to shareholders.

The potential sale of a further 14% equity interest to the same consortium--at the option of National Grid or the consortium between March 1, 2019 and Oct.31, 2019--is on broadly similar terms to the previous stake sale, it added.

"If the sale of the further interest is completed, the use of proceeds will be updated at that time," the company said.

Shares at 1050 GMT up 6 pence, or 0.7%, at GBP10.13, valuing the company at GBP37.96 billion.

Ian Walker contributed to this article

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

March 31, 2017 07:49 ET (11:49 GMT)

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