Gujarat Gas Ltd to acquire CGD business from GSPL for Amritsar and Bhatinda

The Board of Directors of Gujarat Gas Ltd at its meeting held on 1st June, 2021, has approved the acquisition. Based on the recommendations of the Audit Committee and in terms of the Business Valuation Report of Registered Valuer, the board approved the acquisition/transfer of City Gas Distribution business for Amritsar and Bhatinda Geographical Area ('CGD Business') as a going concern, on Slump Sale basis, from Gujarat State Petronet Limited ('GSPL') for an aggregate cash consideration of Rs. 163.31 crore, without values being assigned to individual assets and liabilities, under a Business Transfer Agreement. Further, the acquisition of CGD Business on a Slump Sale basis by way of Business Transfer Agreement (BTA) is subject to approval by the Board of Directors of GSPL and other conditions precedent and conditions subsequent, if any, as agreed in the BTA. The turnover of GSPL for FY 2019-20 was 2,36,927.09 Lacs.

The acquisition of CGD Business for the Amritsar and Bathinda Geographical Areas by way of Business Transfer Agreement would inter alia result in growth opportunities in line with strategic directions of the Board of Directors of the Company.

Shares of Gujarat Gas Ltd was last trading in BSE at Rs.540.2 as compared to the previous close of Rs. 536.35. The total number of shares traded during the day was 245422 in over 8302 trades.

The stock hit an intraday high of Rs. 547.95 and intraday low of 534.95. The net turnover during the day was Rs. 132594428.

Source : Equity Bulls

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