Engie SA (ENGI.PA, ENGIY), on Thursday, signed an agreement to acquire UK Power Networks for an equity value of 10.5 billion pounds, marking a major step in strengthening its position in regulated electricity networks and expanding its footprint in the UK.
The deal completion is expected in mid-2026.
The deal values at 15.8 billion pounds, implying around 1.5x estimated Regulated Asset Value or RAV as of end-March 2026 and roughly 10x estimated 2027 EBITDA, including unregulated assets.
The financing will comprise approximately 5 billion euros of debt and hybrid issuance, a 4 billion euros disposal program by 2028, and up to 3 billion euros equity through an accelerated book building.
Management expects the deal to have an immediate positive impact on results and to be accretive from the first full year after completion, while preserving credit ratings and supporting dividend policy.
UK Power Networks delivers 71 TWh of electricity annually to 8.5 million customers through a 192,000 km distribution network across London, the South East and East of England, supported by 6,500 employees.
The company said that the regulated Asset Value amounted to 9.2 billion pounds at the end of March 2025 and is projected to reach 10.5 billion pounds by March 2028.
The company said net financial debt is projected to rise by 13 billion euros to 15 billion euros by the end of 2026, with capital employed increasing by about 17 billion euros to 19 billion euros.
Engie closed trading, 2.08% higher at 27.54 euros on the Paris Stock Exchange.
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