BG Examines Possible Sale of 65% Stake in Gujarat Gas
BG is considering the disposal as part of a global portfolio review, according to Mark Todd, a company spokesman. The company has been a shareholder in Gujarat Gas since 1997. Gujarat Gas, based in Ahmedabad, India, has a market value of about 53.8 billion rupees ($1.1 billion).
“We’ve not taken any decisions,” Todd said today by telephone from Reading, England where BG is based. “There is no guarantee of any transaction.”
BG, which is focusing on projects in Brazil, Australia, the U.S. and North Sea, has been spinning off some non-core assets. Last year, it sold its interest in Premier Power Ltd. to AES Corp. and a 50 percent stake in Seabank Power Ltd. to Cheung Kong Infrastructure Holdings Ltd.
Gujarat Gas, which has a network of about 3,500 kilometers (2,175 miles), has been examining plans to expand operation outside of the western Indian state of Gujarat.
“We will keep all assets in our portfolio under review,” BG Chief Executive Officer Frank Chapman said Oct. 25.
BG rose 2 percent to 1,400 pence in London. The shares are up 8 percent this year.
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