National Grid has announced plans to raise £7 billion through a rights issue to support extensive upgrades to Britain's electricity infrastructure. The move comes as part of a broader strategy to double its network investment over the next five years, with a total of £60 billion allocated for improvements by 2030. Over £30 billion of that will be invested across England, Scotland, and Wales.

The company aims to address the rising demands on the UK's electricity grid as the transition to renewable energy accelerates. John Pettigrew, National Grid's CEO, said the initiative is expected to create 60,000 jobs in the UK.

"This is a defining moment for National Grid, as we significantly increase investment to secure our leadership in the energy transition," Pettigrew commented, noting the global urgency to meet net-zero goals.

The rights issue will offer existing shareholders the opportunity to buy seven new shares at a roughly 33% discount for every 24 they hold. The company's shares dropped by 8% following the announcement.

Additionally, National Grid plans to sell its UK-based Grain LNG business and its US onshore renewable operations to further finance the upgrades. Despite the substantial investment, the company reported a 15% drop in annual profits, totaling £3.05 billion.

Source: uk.finance.yahoo.com