By: Pravin Prashant
Last updated : June 02, 2021 10:48 am
The Slump Sale was for an aggregate cash consideration of Rs. 163.31 crore without values being assigned to individual assets and liabilities under a Business Transfer Agreement
The board of Gujarat Gas Limited has given approval for the the acquisition/transfer of Gujarat State Petronet Limited (GSPL) City Gas Distribution (CGD) Business for Amritsar and Bhatinda Geographical Area as a going concern on Slump Sale basis.
The Slump Sale was for an aggregate cash consideration of Rs. 163.31 crore (subject to various transaction adjustments), without values being assigned to individual assets and liabilities under a Business Transfer Agreement (BTA).
Further, the acquisition of CGD Business on a Slump Sale basis by way of BTA is subject to approval by the Board of Directors of GSPL and other conditions precedent and conditions subsequent, if any, as agreed in the BTA.
The Board of of Gujarat Gas Limited has approved the acquisition of CGD business (including its respective authorization and all assets, liabilities, licenses, contracts, permissions intangible assets which inter alia including customer relationship contracts and workforce belonging to the CGD Business etc.) in respect of Geographical areas of Amritsar and Bhatinda (along with all other rights, titles, interests and benefits attached in relation thereto) from GSPL. The turnover of GSPL for FY 2019-20 was Rs. 2,369.27 crore.
GSPL is a government owned company and holds 54.17% of the paid-up equity share capital of Gujarat Gas Limited (GGL). GGL is a subsidiary of GSPL. The acquisition of CGD Business is a related party transaction between two government companies and therefore the requirements under Regulations 23 of the Listing Regulations will not be applicable.