* Buyer is India's state-run company Gujarat State Petroleum
* Sale priced at 295 rupees per share
* Deal brings BG's disposals to $4 bln as part of $5 bln
LONDON/MUMBAI Oct 3 BG Group said it
agreed to sell its majority stake in western India-based Gujarat
Gas for $470 million to a unit owned by India's
state-run Gujarat State Petroleum Corp (GSPC), as part of the
British oil firm's disposal programme.
The offloading of a 65 percent stake in Gujarat Gas, a gas
distribution firm active in western India, meant BG had now
agreed disposals worth $4 billion, edging it closer to a $5
billion target, the company said on Wednesday.
In February, BG announced plans to sell off assets in
downstream distribution and power generation to enable it to
channel resources into more lucrative upstream oil and gas
The sale was priced at 295 rupees per Gujarat Gas share, a
12 percent discount to the closing price on Wednesday, a banker
who advised on the deal told Reuters.
Under Indian stock market rules, GSPC will have to make a
mandatory open offer for a minimum of 26 percent of Gujarat Gas.
The deal is expected to complete during the first half of
next year, BG said.
Citi advised BG, while Rothschild advised GSPC.