BG Asia Pacific Holding may Offload 14% in Mahanagar Gas

MUMBAI: BG Asia Pacific Holding, the promoter of Mumbaibased city gas distribution Mahanagar Gas, is looking to sell up to 14% stake for $169 million in the company through a block deal on Thursday, the term sheet seen by ET showed. The floor price for the sale has been set at ₹851 per share, a 5.7% discount to Tuesday’s closing price.

Mahanagar Gas, listed in 2016, is a joint venture between GAIL and BG Asia Pacific. BG Asia Pacific Holding is a subsidiary of BG Plc UK.

BG Asia will sell 1.38 crore shares though the block deal. After the block deal, BG Asia holding in Mahanagar Gas will drop to 10%, which has a lockin period up to June 29, 2019, according to the term sheet. Citi is the book runner to the deal.