Gujarat Gas to shine on stake sale buzz

The race for BG Group's controlling stake of 65.12 per cent stake in Rs 1,800-crore Gujarat Gas Co Ltd (GGCL) has been gaining momentum with more players showing interest. Keen competition is expected between the Gujarat Government-controlled fully integrated GSPC Group and the Union Government-controlled downstream gas-major GAIL (India) Ltd. Even Adani Group is set to be interested in the company. The Berkshire-headquartered BG Group Plc (formerly British Gas) is working overtime to divest its stake in Gujarat Gas. BG Group may shortlist the potential suitors by mid-January and has reportedly appointed Citigroup as an advisor to the proposed deal. The UK-based company acquired interest in GGCL from Gujarat Industrial Investment Corporation (GIIC) and Mafatlal Group in 1997 at a consideration of Rs 170 crore. – K.S. Badri Narayanan