New Value Analysis of National Grid Plc (LSE:NG)
New Value Analysis of National Grid Plc (LSE:NG)
A new value analysis of National Grid Plc (LSE:NG), a company listed on the London Stock Exchange, has been added to our research pages here. National Grid (LSE: NG) provides electricity and natural gas in the UK and northeastern US through a network of pipelines and transmission cables.
NG is currently in the process of moving its natural gas network in UK to a new entity, which creates a bit of a distraction for shareholders. The UK natural gas distribution transporter licence was transferred to National Grid Gas Distribution Limited in October 2016. National Grid Plc intends selling a majority stake in National Grid Gas Distribution Limited to other investors.
New potential shareholders purchasing National Grid Plc common stock at current prices will keep their interest in the new natural gas entity after the assets have been moved to the new company. Shareholders in National Grid Plc will retain an interest in National Grid Gas Distribution Limited and also receive a share in the proceeds of the sale.
The current valuation statistics include the value of the the gas assets and is a fair representation of the value for common stockholders before and after the proposed corporate action. The value analysis in the report in the members site is a good reference for purchasing the common stock of National Grid Plc as well as the potential value of a new shareholding in National Grid Gas Distribution Limited.
Of particular interest to value investors looking for safety is the refinancing of a significant portion of debt with near dated maturities as part of the corporate action to transfer the assets of the UK gas network. The refinancing of the debt creates a new level of safety for owners of the common stock as near dated matures have been replaced with longer dated debt..
To find out why a value investor would consider an investment in National Grid Plc common stock click here to download the new analysis.
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