BG Group sells Brazilian business

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

"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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.