State-controlled GAIL (India) Ltd has sold over a third of its stake in China Gas Holdings Ltd for HK$492 ($63.5 million or Rs 389 crore, as per a stock market disclosure.
“GAIL has sold 60 million shares of 210 million shares held in China Gas Holdings at HK$ 8.20 per share,” the firm said in the filing.
The firm had acquired the shares representing 4.6 per cent stake in China Gas Holdings for around $31 million (Rs 137 crore back then) in 2005. This means GAIL part exited at 7x its original investment in dollar terms and almost 10x its investment in rupee terms.
China Gas Holdings is listed on the main board of Hong Kong Stock Exchange. The firm is engaged in investment, operation and management of city gas pipeline infrastructure, distribution of natural gas and LPG to residential, commercial and industrial users, construction and operation of oil stations and gas stations and development and application of natural gas and LPG related technologies in China.
Its share price has doubled in the last one year alone.
GAIL, which is into both upstream and downstream gas business, has a sizeable operations abroad through its office in Singapore for pursuing overseas business opportunities, including LNG & petrochemical trading. GAIL has also established a wholly owned subsidiary in the US which in turn has acquired 20 per cent working interest in an unincorporated joint venture with Carrizo Oil & Gas Inc in the Eagle Ford shale acreage in the state of Texas.
In addition to having two wholly owned subsidiaries in Singapore and the US, GAIL has a representative office in Cairo, Egypt to pursue business opportunities in Africa and the Middle East.
It is also an equity partner in two retail gas companies in Egypt, namely Fayum Gas Company (FGC) and National Gas Company (Natgas).
GAIL and China Gas also have an equal equity joint venture company—GAIL China Gas Global Energy Holdings Ltd—for pursuing gas sector opportunities primarily in China.
The Indian state controlled firm is also a part of a consortium in two offshore E&P blocks in Myanmar and holds participating interest in a joint venture company, South East Asia Gas Pipeline Company Ltd incorporated for transportation of gas to be produced from two blocks in Myanmar to China.
(Edited by Joby Puthuparampil Johnson)