BG TO STEP UP GERMAN STAKE

British Gas plc, London, has agreed to take a second interest in the natural gas distribution industry in eastern Germany. The agreement with Treuhandanstalt, the agency responsible for privatizing eastern German industry, will allow BG to acquire a 25.5% interest in a new gas distribution company for the region around Leipzig in West Saxony. The new company has not yet been named. Vereinigte Elektrizitatswerke (VEW) also will hold a 25.5% interest. The remainder of the equity will go to local

July 29, 1991

British Gas plc, London, has agreed to take a second interest in the natural gas distribution industry in eastern Germany.

The agreement with Treuhandanstalt, the agency responsible for privatizing eastern German industry, will allow BG to acquire a 25.5% interest in a new gas distribution company for the region around Leipzig in West Saxony.

The new company has not yet been named.

Vereinigte Elektrizitatswerke (VEW) also will hold a 25.5% interest. The remainder of the equity will go to local municipalities.

Earlier this month BG signed an agreement for a 24% interest in Gasversorgung Sachsen Anhalt (GSA), the gas distribution company that will serve the Halle region (OGJ, July 15, Newsletter).

BG and VEW are discussing participation in a municipal gas company to be established in Leipzig. BG also has talks under way with Treuhandanstalt and other towns in eastern Germany.

In addition to its interest in the distribution industry, BG has been offered a 5% interest in Verbundnetzgas, the gas transmission company serving eastern Germany.