Mumbai: Britain’s BG Group may pull out from Indian city gas distributor Mahanagar Gas Ltd, which faces competition from new players in its main Mumbai market, according to a report in a business daily.
BG, which also operates oil and gas fields in India, is reviewing the Mahanagar operations and is believed to have given a mandate to Kotak investment bank to act as advisor.
Mahanagar Gas, which distributes natural gas and CNG in Mumbai and Thane in India’s western Maharashtra state, could be valued at $525-$530 million.
BG and India’s state-run gas distributor, Gail India Ltd, each own 49.75% of Mahanagar Gas. A spokesman for BG’s Indian arm was not immediately available for comment.
BG also owns a 65.12% controlling stake in Gujarat Gas Co Ltd, a gas distributor in the neighbouring state of Gujarat.