Enron Bids For Majority Stake In Gujarat Gas

The US-based oil and gas multinational, Enron Corporation, may pick up a controlling 51 per cent stake in the Ahmedabad-based Gujarat Gas Company Ltd by buying out the 35 per cent stake of the Arvind Mafatlal group (AMG) and then the 15 per cent stake held by Gujarat Industrial Investment Corporation (GIIC) at a later date.

However, the US major's plan hinges on it actually managing to buy out the AMG stake in the company. The AMG group is also talking to Torrent, Essar, Reliance, besides a couple of foreign companies for divesting its stake in Gujarat Gas, a source said adding that the likely buyers are expected to make their presentations shortly. However, when contacted, Gujarat Gas, AMG and Enron sources refused to comment on the issue.

Besides AMG and GIIC, who between them hold 50 per cent stake in the company, 3 per cent of the stake is held by Hindustan Oil Exploration Company, while 17 per cent of the stake is held by FIs and mutual funds, with the rest 30 per cent being held by the public.

The Rs 100 crore Gujarat Gas Company has already signed an MoU with Enron Qatar for the import and distribution of Liquified Natural Gas.