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Macquarie UK Broadcast Ventures pays £2.5B for UK National Grid's wireless business
April 4, 2007
LONDON -- National Grid plc (“National Grid”) is pleased to announce that it has signed and expects to complete today an agreement with Macquarie UK Broadcast Ventures Limited, the parent company of Arqiva Limited, on the sale of its UK Wireless business for a total cash consideration of £2.5 billion.*
The total consideration represents a multiple of 19.3 times EBITDA** for the year ended 31 March 2006.
Following the announcement on 16 November 2006 regarding the proposed demerger of the UK Wireless business, National Grid received approaches from various parties seeking to purchase this business. National Grid’s Board has determined, following a competitive process, that the agreed sale represents the most attractive and certain outcome for our shareholders. The sale is expected to enhance earnings per share immediately.
Following completion, National Grid is pleased to announce that it will return £1.8 billion to shareholders via an extension of the existing share buy-back programme.
Steve Holliday, Chief Executive of National Grid, said:
"We are delighted with the outcome of this transaction, which has secured an attractive premium for a great business which we have grown successfully. We are confident that it delivers greater shareholder value than a demerger. This represents a significant step in our strategy of focussing on the UK and US electricity and gas markets, and demonstrates our commitment to generating shareholder value. Meanwhile we continue to progress the sale of our much smaller US Wireless business."
The repurchase programme is expected to be effected on the London Stock Exchange over the next 12 to 18 months and will be dependent on market and economic conditions. Shares will be repurchased in accordance with the Board’s general authority to make market repurchases of ordinary shares, as approved by shareholders. The Board will seek shareholder approval to renew this authority at our next AGM.
National Grid plc
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