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BG Signs Definitive Binding Agreement With Cosan For Sale Of Comgás Stake

5/29/2012 2:17 AM ET

BG Group Plc (BRGYY.PK,BG.L) said it inked a definitive binding agreement with Cosan S.A. Indústria e Comércio for the sale of the Group's entire 60.1% holding in Comgás for Brazilian reais 3.4 billion in cash, or around $1.7 billion at current exchange rates. Besides, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion. The transaction is likely to complete by late 2012.

BG Group chief executive Sir Frank Chapman, stated, "This transaction, when completed, will release capital of around $2.8 billion which, along with other planned divestments, represents significant progress towards our two-year goal to release $5 billion of capital from BG Group's balance sheet."

In addition, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil.

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by RTT Staff Writer

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