National Gas Company (NGC), Oman's largest LPG supply company, is planning to divest its entire 70 per cent stake in its subsidiary, Innovative Energy Systems, according to a disclosure to the Muscat Securities Market (MSM) on Monday.
The company is in active discussion for the sale of its 70 per cent stake in one of the subsidiaries, Innovative Energy Systems. It is anticipated that the transaction will be completed in the near future. The company will issue another disclosure once the transaction is completed, NGC said in its disclosure.
NGC owns a controlling interest in Innovative Energy Systems, which is engaged in the installation of centralised gas systems for domestic and industrial establishments. The company was incorporated to provide gas and fire technology and services in the region.
NGC did not mention the reason for the divestment and neither did it disclose the name of the potential buyer.
Innovative Energy was jointly incorporated by National Gas and Ashtech Gas Engineering & Services FZC of UAE, which specialises in global standard equipment for the gas industry and provides gas technological solutions in the Middle East region.
NGC's 70 per cent investment in Innovative Energy was previously held through its other subsidiary Shoulat al Aman Gas Co, but in 2010, Shoulat al Aman transferred this investment to the parent company.
Recently, National Gas signed a joint venture agreement with Qatar-based Buzwair Industrial Gases Factories to set up a joint-venture company in Oman.
Earlier in November, NGC's subsidiary NGC Energy Sdn Bhd, which acquired Shell Malaysia's LPG assets, started its operations in West Malaysia.