UK's National Grid Gets 94.2% Rights Issue Takeup

14th Jun 2010 08:16

By Selina Williams Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. gas and electricity network operator National Grid PLC (NG.LN) said Monday it has received valid acceptances for 932.65 million new shares in its rights issue, representing around 94.2% of the total number of shares offered to shareholders. The company announced a shareholder two for five rights issue May 20 to help fund a significant increase in the group's U.K. gas and electricity network. Group capital investment plan is forecast to reach around GBP22 billion over the next five years, up from GBP14 billion in the previous five-year period. The new shares in uncertified form are expected to be credited to CREST accounts as soon as possible after 0700 GMT and are expected to commence trading fully paid on the London Stock Exchange today, the company said in a statement. "The board of National Grid believes the proceeds from the rights issue will allow the group to fund a significant increase in U.K. capital investment and continue to deliver attractive returns to shareholders, whilst maintaining single A credit ratings for our U.K. operating companies in a more volatile economic environment," the company's statement said. Morgan Stanley Securities Limited, BofA Merrill Lynch and the London branch of Deutsche Bank AG (DB) will be seeking subscribers for the remaining 57.79 million new shares, for which valid acceptances were not received. National Grid shares closed flat at 499 pence on Friday. Company Web site: http://www.nationalgrid.com -By Selina Williams, Dow Jones Newswires; +44 (0)20 7842 9262; [email protected] (END) Dow Jones Newswires June 14, 2010 03:16 ET (07:16 GMT)