Macquarie and China Investment Corporation are exploring the sale of a £1 billion stake in Cadent, the UK's largest gas distribution network. The sellers, who together hold about a third of the business, are targeting a deal by autumn with Morgan Stanley advising. A new investor would gain board representation through the roughly 17% stake on offer.

Cadent pipes gas to 11 million properties across half of Britain's major local networks. Its regulated asset value stands at £13.1 billion, generating £2.2 billion in annual revenue. The sale revives Macquarie's earlier plans to trim its 26% holding, while CIC aims to halve its 17% share, potentially attracting investors eyeing long-term infrastructure assets.

The transaction emerges as the UK government faces pressure to slow the planned phase-out of gas networks amid soaring net zero costs. Analysts suggest this political friction could extend the useful life of assets like Cadent's, making them more valuable. For Macquarie, the sale would follow its pattern of exiting mature UK utility holdings after building them.