Spanish utilities firm Gas Natural Fenosa is looking to acquire the 65% stake in Gujarat Gas Company from UK-based energy giant BG Group for about $900m and is in discussions with the company.
The other prospective bidder competing for the deal includes a consortium of state-run Oil and Natural Gas Corporation, Bharat Petroleum Corporation and Gujarat State Petroleum Corporation (GSPC).
BG’s Indian unit, which revealed plans of divesting its stake in Gujarat Gas last November, expects to award the contract by early May, Reuters reported citing an unidentified source.
Germany’s utility E.ON AG, UK-based private equity firm Actis, and India’s Adani Gas and Torrent Power withdrew from the race to acquire India’s largest city gas distribution (CGD) company in the private sector due to stiff valuations.
Gujarat Gas supplies piped gas to more than 340,000 domestic and industrial customers and compressed natural gas to 168,000 users, operating a 3,980km gas pipeline network.