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Gujarat Gas likely to buy stake of GAIL Gas in VGL, says report

Gujarat Gas likely to buy stake of GAIL Gas in VGL, says report

Gujarat Gas likely to buy stake of GAIL Gas in VGL, says report
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By CNBC-TV18 Jul 6, 2018 2:35:57 PM IST (Published)

India’s largest city gas distribution company Gujarat Gas Ltd (GGL) is looking to buy the entire 50 percent stake of GAIL Gas in Vadodara Gas Ltd (VGL), reported LiveMint quoting senior government officials.

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The size of the deal is expected to be about Rs 200-250 crore for an enterprise valuation of about Rs 500 crore of VGL, the report said.
“The matter is between GAIL Gas and Gujarat Gas and it is for them to take a final call in the matter,” Shailesh Naik, commercial director, VGL was quoted as saying in the report.
GGL, controlled by Gujarat State Petronet Ltd (GSPL) was earlier looking to buy a minority stake in VGL from GAIL, but later it decided to buy out the entire stake, the report said.
However, the agreement between GAIL and co-owner Vadodara Mahanagar Seva Sadan (VMSS) does not allow either of them to sell more than 20 percent to Gujarat Gas, the daily said, adding that GAIL Gas has sought an amendment in the restrictive clauses of its shareholding agreement with VMSS.
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