British Gas, or BG, has extended the bid submission deadline for stake sale in its subsidiary Gujarat Gas Company Ltd (GGCL) to March 15, from February 29.
According to the bidding companies, the deadline has been extended to allow them more time to discuss the matter with their boards and decide on the bidding process.
“We have already finalised our bid. But BG has extended the bid submission date, as some players need more time to go through the data and also discuss the matter with their respective board members,” said an executive from a public sector company which is bidding.
BG has decided to exit the city gas distribution business in which it has a 65 per cent stake.
BG expects to raise Rs 3,150 crore ($600 million) through this divestment. Ameet Desai, managing director of Adani Enterprises, said, “We are interested in bidding for British Gas’ stake in Gujarat Gas. If the acquisition comes through, it will have synergies with our own gas distribution business.”
So far, seven bidding groups have been shortlisted after preliminary non-binding offers. Among Indian public sector units, Bharat Petroleum, Gujarat State Petroleum Corporation and Oil and Natural Gas Corporation have formed a consortium. Torrent Power and Adani Group are among the Indian private sector candidates. Private equity investor Actis has also jumped into the fray, as have three European strategic energy and utility companies, including E.On and GDF Suez.
Oil India is expected to join at a later stage as a partner to a more serious player.
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However, due to concerns over fuel supply, margins, expansion strategy and other operational challenges in GGCL, most of the bids, according to sources, have come at the market price or a slight discount.
Shares in GGCL closed 0.66 per cent higher at Rs 391.45 on the Bombay Stock Exchange.