Oct 27 (Reuters) - Hermes Investment Management has joined a consortium bidding to buy a controlling stake in the gas distribution division of National Grid NG.L , Sky News reported.
The bid already comprised China Investment Corp, Allianz ALVG.DE , Dalmore Capital and Amber Infrastructure; and Macquarie Bank MBL.UL , Sky News said, adding the deal could value the business at more than 11 billion pounds including debt.
Hermes had been part of another consortium featuring state-backed funds from Abu Dhabi and Kuwait, and Canadian pension funds but the bid was eliminated as it was significantly lower than those of competitors, Sky said.
Hermes Investment Management declined to comment and National Grid could not be immediately reached outside regular business hours.
Last year, National Grid put a majority stake in its 8.5 billion pound gas business distribution up for sale as it shifted focus to better assets such as U.S. networks.
Hong Kong billionaire Li Ka-Shing is also preparing a bid for the stake in gas distribution networks, the Financial Times said in September.