BG Group sells Brazilian business
BG Group is to sell its majority stake in Brazilian gas distributor Comgás for around 1.7 billion dollars.
BG Group is to sell its majority stake in Brazilian gas distributor Comgs for around 1.7 billion dollars.
The natural gas producer has signed a binding agreement with Brazilian firm Cosan S.A. Indstria e Comrcio for the sale of the group's entire 60.1% holding in Comgs.
BG Group Chief Executive, Sir Frank Chapman, said that when completed, the deal would release capital of around $2.8bn and reduce debt on the company's balance sheet by around $1.1bn.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Along with other planned divestments, [this] represents significant progress towards our two-year goal to release $5bn of capital from BG Group's balance sheet," he said.
The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012.
BG Group and Cosan have also agreed, when the sale is complete, to co-operate on evaluating and developing gas supply options in Brazil.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published