GSPC inks definitive agreements for acquisition of 65.12% stake in GGCL

Gujarat State Petroleum Corporation (GSPC) along with its affiliates (GSPC Group) has signed definitive agreements for the acquisition of 65.12% stake in Gujarat Gas Company (GGCL) from BC Group (BG). The acquisition bears a significant strategic importance and will add significant customer base to GSPC’s existing business in Gujarat.

BG’s shareholding is being acquired by Gujarat Distribution Networks, a company in which 100% is held by GSPC Group. The agreement was signed on October 03, 2012 at Singapore. The acquisition is being made at Rs 295 per share and GSPC will pay Rs 2,463.8 crore to BG for the acquisition.

The acquisition is subject to the customary regulatory approvals and is expected to close pursuant to completion of open offer as per SEBI Takeover Code and the approval of the Competition Commission of India and Reserve Bank of India.

GSPC Group is the leading oil and gas exploration, development and production companies in India and is also one of the largest gas trading companies in India. In addition, the Group has a significant presence in the gas transmission and gas distribution businesses. Government of Gujarat along with its public sector undertakings are majority shareholders in the Group.