GAIL India, state-owned gas utility is planning to divest 4.6% of its stake in Hong Kong-listed, city gas distribution firm, China Gas Holdings. In 2005, the company had made a strategic investment of Rs 137 crore by acquiring 210 million shares of China Gas. The company, however, is deciding to keep a small strategic interest in the company that will help it retain its board position in China Gas.
The entity has earned only Rs 16.29 crore as dividend on its investment in China Gas over seven years. As the current share price is more than seven Hong Kong dollars, it has decided to sell and re-invest the earnings from the stake sale in overseas upstream assets.
