National Grid has announced plans to sell a majority stake in its gas distribution business.

The company said its Board believes there is an opportunity to 'rebalance' National Grid's portolio and "realise the value it has created" in its networks.

Steve Holliday, National Grid's chief executive, said: "In the second half of 2015/16 we will begin a process to rebalance our portfolio through the potential sale of a majority stake in our UK Gas Distribution business. Following a sale, National Grid's portfolio of businesses will have a higher asset growth profile and will remain well positioned to deliver strong returns and a sustainable, growing dividend. The UK Gas Distribution business has been an important part of National Grid and the sale of a majority stake will realise some of the value we have created for our shareholders."

-- Advertisement --

In it's half year results, the company reported a 15% rise in pre-tax profit to £1.348bn.

(LM/CD)