BG to offload Comgas stake

Sale pending: BG has signed a memorandum of understanding to sell its 60.1% stake in Comgas to Cosan for $1.8 billion

Josh Lewis

 03 May 2012 09:04 GMT

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…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index