Tuesday, January 24, 2012

Move to regulate margins on sale of LNG could hit Gujarat Gas valuation

The government's decision to regulate marketing margins for natural gas will hurt the deal valuation in BG's sale of its 65% stake in Gujarat Gas, which has attracted ONGC, Bharat Petroleum, GSPC, Adani, Torrent Power, Germany-based E.ON, Electricitie-De France and global private equity firms, executives and bankers said. 
"This issue could affect BG's overall valuations," said a person close to the deal. Leading gas transportation firm, state-run Gail India, has already opted out of the race as it felt the current share price of the company was too high to make it a worthwhile target.

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Simulating with Proteus

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