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Shell reduces stake in Mahanagar Gas to 24% from 32.5%; stock drops 3%

Mahangar Gas said its business in India will continue as usual even after the changes in Shell's shareholding

Amritha Pillay  |  Mumbai 

Shell

BG Asia Pacific Holdings (BGAPH), a wholly owned subsidiary of Shell, reduced its shareholding in from 32.5% to 24%, the oil company said in its statement on Wednesday.

“This is part of Shell’s ongoing portfolio optimisation to transform into a simpler company, delivering stronger returns,” said in its media statement.

In a separate statement sent to the exchanges, state-run said, “would like to state that, since this is the prerogative of Promoters, MGL has nothing to comment."

Mahangar Gas added business will continue as usual even post changes in Shell’s shareholding. “is abreast with the latest technologies as applicable to its areas of operations and is a self-reliant, financially sound company."

In fact, there was an indirect change in holding of one promoter, when in February 2016, Royal Dutch acquired BG (British Gas) worldwide. The business did & will continue as normal, irrespective of any change in shareholding.”

further stated: “Mahanagar is an independent Board managed company with proven track record in (CGD) business. Day to day decisions are taken by Apex Executive Committee. Except one whole time Director each from GAIL & BG (Shell), all other members of Apex Executive Committee are company executives with long experience in CGD industry.” GAIL (India) holds 32.5% stake in Mahangar Gas.

Shell, in its statement, further added this announcement has no impact on other businesses in India. “We believe in the key role that gas will play in India in the near future and continue to seek opportunities in that arena. Our investment in the Hazira Liquefied Natural Gas (LNG) receiving terminal in Gujarat and the recent creation of Energy India, our commitment to grow in India and to increase gas penetration in the country,” the company said in its statement.

On Thursday, the stock of closed 3% lower on BSE at Rs 917.

First Published: Wed, April 11 2018. 20:24 IST
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