BG Group signs with Cosan for Comgás holding

BG Group has signed an agreement with Cosan for the sale of the group’s entire 60.1 per cent holding in Comgás for approximately $1.7bn.

In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1bn.

The definitive agreement follows BG Group’s announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the group’s interest in Comgás, Brazil’s largest gas distribution company.

Sir Frank Chapman, BG Group chief executive, said: ‘This transaction, when completed, will release capital of around $2.8bn that, along with other planned divestments, represents significant progress towards our two-year goal to release $5bn of capital from BG Group’s balance sheet.’

The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012.