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BG to offload Comgas stake

UK giant BG Group has signed a memorandum of understanding to sell its majority stake in Brazil’s largest gas distribution company, Comgas, for about $1.8 billion.

BG said it had signed the agreement with Cosan SA Industria e Comercio which will see the latter take its 60.1% stake in Comgas.

"This memorandum of understanding is another important step in our ongoing portfolio rationalisation and funding diversification programmes, underpinning delivery of the wealth of opportunities we have across our global portfolio,” BG chief executive Frank Chapman said.

“We look forward to concluding this deal as part of our plans to release some $5 billion of capital in the next two years through strategic divestments.”

BG said it expected to sign a definitive sale agreement in the near term and was likely to complete the deal before the end of the year.

Anglo-Dutch supermajor Shell holds an 18.1% stake in Comgas, with the remaining 21.8% publicly held through a listing on the Sao Paulo stock exchange.