The Hague-based LNG giant Shell, through its units Shell Gas, Shell Brazil Holding and Integral Investments, has agreed to sell its 16.8 percent interest in Companhia de Gas de São Paulo (Comgás) to Cosan.
Under the agreement, Shell will exchange its ~21.8 million common shares in Comgás for Cosan Indústria e Comércio shares plus cash, Shell said in a statement.
Comgás is a gas distribution company in the São Paulo state of Brazil, primarily serving power, commercial, industrial and residential users.
The headline for the transaction approximately $380 million and is expected to be completed by year-end. Comgás is Brazil’s largest gas distributor with Cosan currently a 63.4 percent shareholder.
“This transaction allows us to focus our efforts in Brazil on areas where we see the most strategic value for Shell longer-term,” said Shell’s integrated gas and new energies director, Maarten Wetselaar.
Shell added that it retains operations in Brazil that are not affected by this transaction, including its deepwater portfolio and downstream business, which includes participation in Raízen, one of the leading biofuel producers in Brazil.