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BG Group to sell stake in Gujarat Gas Co for $470 million

by on October 3, 2012 8:34 am BST
 

BG Group to sell stake in Gujarat Gas Co for $470 million

BY SELINA WILLIAMS

LONDON–U.K. oil and gas company BG Group said it had reached agreement to sell its majority interest in India’s Gujarat Gas Co. Ltd. for $470 million to GSPC Distribution Networks Ltd., a subsidiary of Gujarat State Petroleum Corp.

The agreement, which is subject to regulatory approval, involves the sale of BG Asia Pacific Holdings Pte Ltd.’s 65.12% controlling interest in GGCL, India’s largest private sector natural gas distribution company. The transaction is scheduled to complete in the first half of 2013.

“With this announcement, we have non-core asset sales agreements in place that will release some $4 billion from our balance sheet. We have made outstanding progress since announcing our two-year $5 billion release program only eight months ago, and we remain focused on the successful delivery of our growth projects,” said BG Group Chief Executive Frank Chapman.

Dow Jones Newswires

10/03/2012