In recent developments, NatWest Group Pension Fund is reportedly contemplating the sale of its stake in Phoenix Energy, a greenfield project co-owned by the fund and the Utilities Trust of Australia. The stake, valued at £1.2 billion (GBP1 = USD1.0524), has attracted interest from investors based in Europe and Asia.
Phoenix Energy was initiated as a greenfield project by British Gas Plc back in 1996. It now delivers natural gas to over 350,000 households in Northern Ireland. The NatWest Group Pension Fund, previously known as Royal Bank of Scotland Group (LON:NWG) Pension Fund, along with the Utilities Trust of Australia, acquired their stakes in Phoenix Energy in 2013.
Despite the interest from potential buyers, it is important to note that the sale process is still in its early stages. As such, it may not necessarily result in a transaction. This decision by NatWest to consider selling its stake comes as a significant move given the company's long-standing involvement and investment in Phoenix Energy.
The potential sale indicates a shift in NatWest's investment strategy and could potentially impact the future operations of Phoenix Energy, depending on the new stakeholders' plans for the company. However, as it stands today, no definitive decisions have been made regarding this potential transaction.
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