GSPC Group to Acquire 65.12% Stake in Gujarat Gas Company Limited

The Gujarat State Petroleum Corporation Ltd. (GSPC) alongwith its affiliates (GSPC Group) today signed definitive agreements for the acquisition of 65.12% stake in Gujarat Gas Company Limited (GGCL) from BG Group (BG). End Quote

(1888PressRelease) October 04, 2012 - BG's shareholding is being acquired by Gujarat Distribution Networks Ltd., a company in which 100% is held by GSPC Group. The acquisition is being made at Rs. 295 per share and GDNL will pay Rs. 2,463.8 crores to BG for the acquisition. The acquisition is subject to the 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 of India.

Tapan Ray, MD, GSPC Group said "We are pleased to announce this acquisition that enhances GSPC group's presence in the state of Gujarat. The acquisition is in the long term interests of the industrial and retail customers of Gujarat."

The acquisition bears a significant strategic importance and will add significant customer base to GSPC's existing business in Gujarat. In addition the acquisition is consistent with the stated strategic objective of expanding its presence in upstream and downstream segments of the energy value chain and realising the vision of developing Gujarat as natural gas driven economy.

GSPC Group is the leading oil and gas exploration, development and production companies in India and is also one of the largest gas trading companies in India. In addition, the Group has a significant presence in the gas transmission and gas distribution businesses. Government of Gujarat along with its public sector undertakings are majority shareholders in the Group.

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