BG Group PLC Announces Definitive Binding Agreement Signed For Sale Of Comgás Stake To Cosan S.A. Indústria e Comércio

BG Group PLC announced it had signed a definitive binding agreement with Cosan S.A. Indústria e Comércio (Cosan) for the sale of the Group's entire 60.1% holding in Comgás for Brazilian reais 3.4 billion in cash, or approximately $1.7 billion at current exchange rates. In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion. The definitive agreement follows BG Group's announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the Group's interest in Comgás. The transaction is likely to complete by the end of 2012. Further, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil. The co-operation agreement reflects BG Group's long-term commitment to Brazil, where the Group and its partners are developing world-class oil discoveries offshore in the Santos Basin. Shareholders in Comgás are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the São Paulo stock exchange.