LONDON/MUMBAI (Reuters) - BG Group said it agreed to sell its majority stake in Gujarat Gas (GGAS.NS) for $470 million to a unit owned by state-run Gujarat State Petroleum Corp (GSPC), as part of the British oil firm's disposal programme.
The offloading of a 65 percent stake in Gujarat Gas, a gas distribution firm active in western India, meant BG had now agreed disposals worth $4 billion, edging it closer to a $5 billion target, the company said on Wednesday.
In February, BG announced plans to sell off assets in downstream distribution and power generation to enable it to channel resources into more lucrative upstream oil and gas production projects.
The sale was priced at 295 rupees per Gujarat Gas share, a 12 percent discount to the closing price on Wednesday, a banker who advised on the deal told Reuters.
Under Indian stock market rules, GSPC will have to make a mandatory open offer for a minimum of 26 percent of Gujarat Gas.
The deal is expected to complete during the first half of next year, BG said.
Citi advised BG, while Rothschild advised GSPC.
(Reporting by Sarah Young and Prashant Mehra; Editing by Paul Sandle)
Updated Date: Oct 03, 2012 23:15 PM