At least 11 companies, including state-owned GAIL (India) and Oil India, have expressed interest to buy stake in billionaire Mukesh Ambani?s privately owned firm Reliance Gas Transportation Infrastructure (RGTIL).
?There are five Indian and six foreign companies which have submitted expression of interest (EoI) for buying stake in the gas transportation company (RGTIL),? a source privy to the development said.
Gas utility GAIL and oil explorer OIL have submitted separate EoIs for the stake buy, which is being managed by JPMorgan, Citi and SBI Caps.
Other firms which have put in EoI may include NYSE-listed energy major Enbridge.
The source said the companies putting in EoI would visit dataroom of RGTIL and do a complete due diligence before making any financial bid.
RGTIL was originally a subsidiary of Reliance Industries (RIL) and was incorporated in March, 2003 to transport natural gas from eastern offshore gas fields to consumption centres. Two years later, it was transferred to Mukesh Ambani, chairman of RIL.
It was said at that time that Ambani may sell stake in the company through an initial public offering (IPO) once RIL?s eastern offshore KG-D6 field hit peak volumes of 80 mmscmd.
But with KG-D6 output plummeting to less than 34 mmscmd, he wants to sell the gas pipeline business. Industry sources said RGTIL earlier this month held a meeting of its shareholders in Jamnagar, where its registered office is located, to seek approval for the stake sale. The stake sale was approved at the meeting.
RGTIL operates a 1,396-km East-West gas pipeline. The 80 million standard cubic meters per day capacity, 48-inch pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat ferries natural gas from KG-D6 fields.