Date:15/02/2005 URL: http://www.thehindubusinessline.com/2005/02/15/stories/2005021502550200.htm

Back GAIL signs deal for 10 pc stake in China Gas

Our Bureau

New Delhi , Feb. 14

STATE-owned GAIL (India) Ltd will buy a 10-per cent stake in China Gas Holdings Ltd in a deal estimated to be worth $30-35 million, a top company official said.

"We have signed a preliminary agreement to buy 10 per cent of China Gas Holdings Ltd, and a formal agreement will be finalised this week," Mr Proshanto Banerjee, Chairman and Managing Director, GAIL, said on the sidelines of the Third Asia Gas Buyers' Summit here.

GAIL will take up to 10 per cent of the Hong Kong-listed firm, and the investment would be funded purely from the company's internal accruals.

As per the proposed deal, GAIL will have to abide by a lock-in period of two years for off-loading the stake at a future date.

China Gas Holdings Ltd has a licence to set up city gas distribution projects in 42 cities in China and GAIL can take up to 50 per cent in any of the ventures.