We all know that BG Group is preparing to divest its stake in Gujarat Gas and news of BG’s exit from Mahanagar Gas is in the air from last one year or so. (BG controls 65.1% in GGCL and 49.8% in MGL) Personally, I am a big fan of British Gas. I’m of the opinion that British Gas pioneered the modern City Gas Distribution Technology and obviously their partnership helped MGL and GGCL to establish from technology perspective.
Though BG’s exit might not impact already established GGCL, I’m sure their plan to exit from GGCL is not something shareholders might have expected. The reaction by Stock Market is an indication of that. GGCL's stock has lost close to 23% since the start of September 2011, mainly driven by the news of BG’s exit.
Various reasons are being reported behind this exit, right from availability of gas, high gas-prices to need to raise capital to invest in other countries. Anyways, for BG there is certainly a valid business reason behind this move. Keeping business aside, for me, it is a sad news. :-|
By the way, I like the tagline British Gas used earlier with their brand : ‘Natural Gas, It’s our business.’ :)
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