Galp Mulls Sale of Gas Distribution Ops: Press

Portuguese oil firm Galp Energia intends to divest its gas distribution assets, sources told Bloomberg on March 11, valuing the assets at as much as €1.5bn ($1.7bn).

The company is working with Bank of America on the potential sale, the source said, and plans to release preliminary information on its distribution business to possible buyers shortly. It will invite initial bids for the assets in the next few weeks.

Through an associate company, Galp controls stakes in nine gas distributors in Portugal, according to its website. It has a network spanning 13,015 km with a regulated asset based valued at €1.1bn at the end of 2018.

Galp shed a 22.5% stake in the business to a group led by Japan's Marubeni Corp. in 2016, and last month its CEO said the firm would consider "asset rotation" if necessary, referring to its gas infrastructure was a "key candidate."

A final decision on the sale has not been taken yet, the sources said.