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Construction : Deals | July 2012 | Source : Construction Update

State-owned GSPC to buy BG's stake in Gujarat Gas

The State-owned Gujarat State Petroleum Corporation (GSPC) is likely to acquire BG’s stake of 65.12 per cent in Gujarat Gas for Rs 3,000 -3,200 crore. A GSPC-led consortium, which also comprises ONGC and BPCL, had emerged as the lone bidder for BG’s 65.12 per cent stake in Gujarat Gas, which is engaged in city gas distribution in Surat, Bharuch and Ankleshwar.

Sources say that talks between the GSPC-led consortium and BG for the stake sale are in final stages. The talks are in final stages, and a decision is likely very soon, the State Energy Minister Saurabh Patel, said. In fact, a senior government official in the know of the development said that the deal could be clinched and formally announced as early as next week.

The State officials concerned say that the deal is likely to be finalised at around Rs 3,000 - 3,200 crore, which is almost Rs 1,000 crore less than what BG had hoped to get when it made the surprise announcement to exit Gujarat Gas in November 2011.
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