Gujarat State Petronet has received fair trade regulator CCI's approval to raise stake in Sabarmati Gas Ltd by 13.71 per cent to 27.47 per cent for an undisclosed amount.
Gujarat State Petronet, which is engaged in laying, building and operating natural gas pipelines and city gas distribution (CGD) networks, among others, currently holds 13.76 per cent stake in Sabarmati Gas.
Along with Gujarat State Petronet Ltd (GSPL), Gujarat State Petroleum Corporation (GSPC) and Bharat Petroleum Corporation Ltd (BPCL) have also received CCI's green signal to acquire stakes in Sabarmati Gas.
As per the details, the combined entity (GSPL, GSPC and BPCL) will acquire approximately 49.86 per cent of the issued and paid-up share capital of Sabarmati Gas (SGL).
With the approval, SGL will become an associate company of GSPL with GSPL holding 27.47 per cent of the fully paid up equity share capital SGL.
Sabarmati Gas retails CNG to automobiles and piped cooking gas to households in Gandhinagar, Mehsana and Sabarkantha in northern Gujarat.
State-owned Bharat Petroleum Corp Ltd ( BPCL) currently holds 25 per cent stake in Sabarmati Gas, while Gujarat State Petroleum Corp (GSPC) has 11.25 per cent.
In December last year, GSPL had said in a regulatory filing that it has "entered into the share purchase agreement with the financial investors of Sabarmati Gas Ltd and SGL, wherein, GSPL has agreed to purchase 27.43 lakh equity shares having face value of Rs 10 per cent".
GSPC is a public sector company primarily engaged in oil and gas exploration, development and production while BPCL is into the business of refining and marketing of oil and gas.
