British energy major BG Group today said it has reached an agreement to sell its majority stake in Gujarat Gas Co Ltd (GGCL) to the state government-run GSPC for over Rs 2,460 crore.
BG Group said it will sell its 65.12% stake in GGCL to GSPC Distribution Networks Ltd (GDNL), a subsidiary of Gujarat State Petroleum Corp (GSPC).
The transaction, which is subject to regulatory approvals, is scheduled to be completed during the first half of 2013, BG Group said in a statement.
GDNL is buying GGCL shares at Rs 295 apiece and it will pay Rs 2,463.8 crore to BG Group for the acquisition, a statement issued by GSPC said.
This is at a discount to GGCL's closing price of Rs 337.20 a share on the National Stock Exchange (NSE) today. The company shares had touched a 52-week low of Rs 288 in June this year, while it had scaled highs of Rs 458.85 in November last year.
The agreement 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.
BG Group Chief Executive Frank Chapman said: "With this announcement, we have non-core asset sales agreements in place that will release some USD 4 billion from our balance sheet.
"We have made outstanding progress since announcing our two-year USD 5 billion release programme only eight months ago, and we remain focussed on the successful delivery of our growth projects".
