17th Oct 2013 10:57
LONDON (Alliance News) - BG Group PLC Thursday said it has signed a definitive agreement with Azure Midstream Energy LP for the sale of its entire holding in TGGT, a joint venture company in Texas and North Louisiana.
The global natural gas exploration and production company said that as part of the deal it will receive a net cash payment of USD231 million, along with a USD17 million stake in Azure, which represents roughly a 4% equity holding, in return for BG's entire 50% equity holding in TGGT.
BG Group said the deal is part of its strategic commitment to manage its portfolio of assets, and completion of the deal is expected by the end of the year, subject to regulatory approval.
The company said that EXCO Resources, which owns the other 50% interest in TGGT, also will sell its share to Azure. The total price of the acquisition, including the settlement of TGGT debt, is roughly USD910 million.
BG Group shares were down 0.5% to 1,220.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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