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United Kingdom : BG sells UK CATS gas pipeline stake to infrastructure fund

June 17, 2014

Britain'sBG Group has sold a majority stake in one of Europe's biggest gas pipelines to Antin Infrastructure Partners for nearly US$1 billion, the firm's first major asset sale since announcing a portfolio review to beef up its finances.

The deal, set to close in the second half of the year, is expected to generate a post-tax profit for BG of around US$700 million at a time when the company is under pressure to return value to shareholders disappointed by a string of production downgrades. "At a time when its balance sheet remains under some pressure, the divestment ...represents a sensible release of capital," said Lucas Herrmann, an analyst at Deutsche Bank.

Shares in BG were up 0.3 per cent at 0811 GMT.

BG will retain its right to access gas transport capacity on the CATS pipeline, a 404-kilometre-long subsea link that pumps up to 1.7 billion cubic metres of gas per day from UK North Sea fields, more than eight times Britain's average daily gas demand. Subscribers, log in here to read the full story. If you do not have an account, subscribe here.

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Source: TendersInfo (India)

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