BG Group plans to sell Gujarat Gas stake

BG Group has hired Citigroup as advisor for the potential sale of its stake in Gujarat Gas.

The company holding of 65.12 per cent stake in India’s largest natural gas distributor is valued at $600 million.

Gujarat Gas has 325,000 residential, commercial and industrial customers who the company serves through a pipeline network of about 3,850km.

BG also owns a 49.8 per cent stake in Mahanagar Gas in India, the country’s largest city gas distribution company by customer base.

GAIL and Gujarat State Petroleum Company, are reported to be considering a bid.