Shares digital

The owner of the UK’s electricity transmission network National Grid (NG.) has finally agreed the sale of one of its American assets, Ravenswood power station, a condition of the KeySpan acquisition made by the company in August last year.

Ravenswood, a 2,480 megawatt gas-fired station which supplies around 25% of New York City’s electricity, is being bought by TransCanada for a hefty $2.9 billion. The proceeds are likely to be used for further share buybacks by National Grid. The utility has already returned £1.32 billion to shareholders through a buyback announced at the end of 2006. Last January, the company also announced an update dividend policy, whereby it will raise this year’s full-year dividend by 15% and then 8% per year until 2012.

Shares says: The shares have done badly recently but it is still a quality stock. CS