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UPDATE 1-Ofgem approves transfer of National Grid gas transport license to subsidiary
September 30, 2016 / 4:35 PM / a year ago

UPDATE 1-Ofgem approves transfer of National Grid gas transport license to subsidiary

(Adds timeline, details)

Sept 30 (Reuters) - Britain’s energy regulator Ofgem said on Friday it has granted National Grid approval to transfer its gas transportation license to its new subsidiary National Grid Gas Distribution Limited (NGGD), which is set for sale.

National Grid plc (NG) announced last year plans to sell a majority interest in its gas distribution business, currently owned by a subsidiary of NG, National Grid Gas plc (NGG).

To complete the transaction, National Grid would transfer its gas distribution assets and the NGG license to NGGD.

Ofgem said the license was expected to be transferred on Oct. 1, while NG indicated the sale process was likely to be completed by early 2017.

The Financial Times reported on Sept. 22 that Hong Kong billionaire Li Ka-Shing was preparing to bid for NG’s gas distribution assets, valued at up to 11 billion pounds ($14 bln).

Ofgem reminded potential bidders on Wednesday that any premium they pay above existing values may not be compensated when Ofgem sets the new price control. ($1 = 0.7689 pounds) (Reporting by Nerijus Adomaitis in London; Editing by Susan Fenton)

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