BG Group said Thursday it has signed a memorandum of understanding (MoU) with Cosan S.A. Indústria e Comércio (Cosan) for the sale of its 60.1% holding in Comgás, Brazil’s largest gas distribution company, for approximately $1.8 billion (R$3.4 billion).
Subject to partner consent, BG Group and Cosan expect to execute a definitive sale agreement in the near term. The transaction, which will be subject to regulatory approval, is likely to complete by the end of 2012.
BG Group Chief Executive Sir Frank Chapman said: “This memorandum of understanding is another important step in our ongoing portfolio rationalisation and funding diversification programmes, underpinning delivery of the wealth of opportunities we have across our global portfolio. We look forward to concluding this deal as part of our plans to release some $5 billion of capital in the next two years through strategic divestments.”
Shareholders in Comgás are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the São Paulo stock exchange.