Bord Gáis has confirmed that it will sell Bord Gáis Energy to a consortium made up of Centrica, Brookfield Renewable Energy Partners and Icon Infrastructure in a deal worth €1.1 billion.
In a statement, the company said that the full terms of the sale have been finalised and transaction documentation signed.
The deal is expected to be completed in the second quarter of this year.
All Bord Gáis Energy staff will transfer to the new group with their existing working terms and conditions.
The State will retain ownership of the natural gas network, which transports gas, as the Government believes that this is strategically important.
Bord Gáis Energy has 900,000 gas and electricity customers across the country. The deal also includes the sale of the Whitegate gas-fired power station in Cork.
"We are pleased to announce that an agreement to sell the Bord Gáis Energy business has been signed. The commitment made by these buyers to acquire the business is a strong vote of confidence in the Irish energy market, the Irish economy and in the Bord Gáis Energy business and its employees," commented Pat Rabbitte, the Minister for Communications, Energy and Natural Resources and Brendan Howlin, the Minister for Public Expenditure and Reform said
They said that the proceeds from the sale will provide additional funding to Government to enable further investment in infrastructure and jobs.
"The fact that Bord Gáis Energy is valued at over €1 billion underlines not just the strength of the business but also the growing health of the Irish economy," commented Bord Gáis Éireann Chairman Rose Hynes .
"Following the sale of its energy business, Bord Gáis Éireann will continue its transformation to become a major Irish infrastructure company consisting of two main subsidiaries, Irish Water, which it is developing into a world class utility business, and Gas Networks Ireland which will continue to fulfill its central role in energy supply," she added.