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Gujarat State Petroleum Corp (GSPC) along with its affiliates (GSPC Group) today signed a definitive agreement to acquire 65.12 per cent stake in Gujarat Gas Company Ltd (GGCL) for Rs 2,463.80 crore.
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The Gujarat Government-run petroleum firm bought the stake from UK's BG Group (BG).
"We are pleased to announce this acquisition that enhances GSPC Group's presence in the state. The acquisition is in the long-term interests of the industrial and retail customers of Gujarat," Tapan Ray, MD, GSPC Group, told PTI.
BG's shareholding is being acquired by Gujarat Distribution Networks Ltd (GDNL), a 100 per cent subsidiary of GSPC Group, he said.
The acquisition is being made at Rs 295 per share and GDNL will pay Rs 2,463.80 crore to BG for the buyout, a company release said.
The agreement is subject to customary regulatory approvals and is expected to close pursuant to completion of open offer as per SEBI takeover code and the approval of the Competition Commission of India and Reserve Bank, it said.
BG Group has a 65.12 per cent controlling stake in GGCL. FIIs and public hold the remaining 34.88 per cent of the shares, GCCL stated on its portal.
GCCL supplies gas to more than 3.49 lakh domestic, commercial and industrial customers and serves over 1,75,757 compressed natural gas (CNG) users. It has network of around 49 CNG stations in Bharuch, Ankleshwar, Surat and surrounding areas in Gujarat.
The deal is consistent with GSPC's stated objective of expanding presence in upstream and downstream segments of the energy value chain and realising the vision of developing Gujarat as a natural gas driven economy, the release said.
GSPC Group is a leading oil and gas exploration, development and production company and figures amongst the largest gas trading firms in India. The Gujarat Government along with its PSUs have majority stake in the Group.
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