NatWest Weighs Sale of £1.2 Billion Phoenix Energy Stake

NatWest Group Pension Fund is weighing the sale of its 50% stake in Phoenix Energy, a natural gas distributor in Northern Ireland, people with knowledge of the matter said.

(Bloomberg) — NatWest Group Pension Fund is weighing the sale of its 50% stake in Phoenix Energy, a natural gas distributor in Northern Ireland, people with knowledge of the matter said. 

The UK-based retirement fund is working with an adviser on the potential divestment, according to the people. Its stake in Phoenix Energy could be valued at about £1.2 billion ($1.5 billion), they said.

The asset is drawing interest from investors in Europe and Asia, the people said, asking not to be identified discussing confidential information. Deliberations are in the early stages and there’s no certainty they’ll result in a transaction, they said. 

A representative for NatWest declined to comment, while a spokesperson for Phoenix Energy didn’t immediately provide comment.

Set up in 1996 by British Gas Plc as a greenfield project, Belfast-based Phoenix Energy owns and operates the largest local natural gas distribution network, providing gas availability to more than 350,000 households, according to its website. 

NatWest Group Pension Fund — formerly the Royal Bank of Scotland Group Pension Fund — and Utilities Trust of Australia each bought a 50% stake in Phoenix Energy in 2013.

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