Gail may pay $35mn for China Gas stake

Gail (India) will pay $30-35 million for acquiring a 10% stake in China Gas Holdings.

China Gas has licence to set up city gas distribution projects in 42 cities in China, and Gail can take up to 50% in any of the ventures.

"We have signed a preliminary agreement to buy 10% of China Gas Holdings, and a formal agreement will be inked this week," Gail CMD Proshanto Banerjee said today.

While Banerjee did not disclose Gail's acquisition price, a senior company official said the company would pay China Gas between $30-35 million. "The money would be paid to them by March-end, and all of this would come from internal accurals."