National Grid to sell gas holding

National Grid Plc, the electricity and natural gas network operator in the United Kingdom, has started an auction to sell a controlling stake in its domestic gas network that could value the business at more than 10 billion pounds ($13.3 billion), people with knowledge of the matter said.

National Grid, which is selling 51 percent of its four regional gas distribution networks, has sent information on the business to potential buyers, according to the people. The company has asked for first-round bids to be submitted by late September, the people said, asking not to be named because the deliberations are private.

Canada Pension Plan Investment Board is considering joining a consortium of Canadian investors and Middle Eastern sovereign wealth funds interested in the assets, one of the people said. Another group including Allianz SE, the infrastructure arm of Australian investment bank Macquarie Group Ltd and Amber Infrastructure Group may also bid, the people said.