*Gujarat State Petroleum Corporation *is planning to merge *Sabarmati Gas *with its gas distribution subsidiary, *GSPC Gas Company* *Ltd*, to provide greater synergies between the two businesses.
GSPC has got the regulatory approvals in place for the merger and decided on the swap ratio. The shareholders of Sabarmati Gas will receive shares of GSPC Gas Company. GSPC Gas is a fully-owned gas distribution company of GSPC, while Sabarmati Gas is promoted by GSPC and BPCL which own 25% equity stake each. IFCI Venture Capital Funds, IDFC Project Equity and Unit Trust of India are the other stakeholders of Sabarmati Gas, with 16% equity stake. Other shareholders are convinced that Sabarmati Gas would grow faster if it is merged with a bigger player like GSPC that has a consumer base of over one lakh. Transaction Note Gujarat accounts for over 35% of India’s gas consumption. Gujarat is the most lucrative market for CGD players and is expected to scale up to over 20 lakh gas connections in the next four years, from the existing six lakh connections. Sabarmati Gas has a consumer base of 20,000 and manages 14 CNG stations. It is targeting to add another 10 CNG stations and one lakh consumers in the next four years. Sabarmati has booked an earning of over Rs 250 crore in 2008-09. On the other hand, GSPC Gas posted an income of over Rs 850 crore for the same year. It has 17 CGD networks and 64 CNG stations. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
