Macquarie plans to cut stake in UK gas network operator

London: Macquarie Group has joined US-based Federated Hermes to look to collectively sell stakes in UK’s gas network operator Cadent worth £1.3 billion (S$2.2 billion), the Financial Times reported on Sunday.

Macquarie, which owns more than a 26 per cent stake in the company, is in early stage talks to sell a 5 per cent stake, while Hermes, which owns 13 per cent of Cadent is looking to sell a 4.6 per cent stake, the report said, citing people close to the discussions.

Macquarie and Federated Hermes, however said that they are committed to be long-term investors while the former said that there is no change in strategy amid the share sale, the newspaper said citing the companies.

The FT report comes as Britain is eyeing to phase out use of use of natural gas as the country is targeting to reach net zero emissions by 2050.