GAIL sells part stake in China Gas Holdings, for Rs385 crore

State-run Gas Authority of India Ltd (GAIL) yesterday said it has sold part of its 4.6 per cent stake in China's city gas distribution company China Gas Holdings, for Rs385 crore.

In 2005, GAIL, India's largest natural gas distributor, had acquired 210 million shares of Hong Kong-listed China Gas at H$ 1.1 per share.

GAIL yesterday sold 60 million shares for HK$ 8.2 per share.

GAIL's chairman and managing director B C Tripathi, told reporters that the  gross realisation from the sale has been Rs385 crore, but the company would have to pay capital gains taxes on the proceeds.

GAIL, the country's largest pipeline operator, with a network of 8,500 km of pipelines, will retain a small stake in order to retain a board position in China Gas.