Petrobras Gas increasing its stake in CEG-RIO SA

By OGJ editors

HOUSTON, Oct. 29 -- Petrobras Gas SA exercised an option to increase its holding in CEG-RIO SA, a natural gas distributor, by acquiring another 9.86% of common stock and 13.86% of preferred stock from Gas Natural SGD for $16.54 million.

Petrobras Gas said it's in the process of securing markets for natural gas produced by its parent, Brazil's state-owned Petroleo Brasileiro SA, and also is expanding its share of the southeastern Brazil distribution market.

Upon closing, Petrobras Gas will hold 26.19% of CEG-RIO's common stock and 43.01% of its preferred stock.