India: Shell Reduces Stake in Mahanagar Gas to 24%

BG Asia Pacific Holdings Pte Ltd.(BGAPH), a wholly-owned unit of Royal Dutch Shell Plc, has pared its shareholding in natural gas distribution company, Mahanagar Gas Ltd. (MGL), to 24 per cent from 32.50 per cent.

The share sale is a part of the ongoing portfolio optimisation to transform into a simpler company, delivering stronger returns, Shell said in a statement without offering details on the equity dilution.

“We believe in the key role that gas will play in India and continue to seek opportunities in that arena. Our investment in the Hazira LNG receiving terminal in Gujarat and the recent creation of Shell Energy India, our gas marketing and trading business, show our commitment to grow in India and to increase gas penetration in the country. Shell looks forward to playing a significant part in the energy transition in India,” the statement added.

Apart from Shell, state-run natural gas firm GAIL holds 32.50 per cent stake in MGL, the Maharashtra Government 10 per cent and public shareholders 25 per cent.