Cia. de Gas de Sao Paulo, a Brazilian natural gas distributor, rose after Cosan SA Industria e Comercio finalized its bid for BG Group Plc (BG/)’s 60.1 percent stake in the company.
Shares of Comgas, as the distributor is known, gained 1.1 percent to 38 reais at the close in Sao Paulo. Cosan fell 0.6 percent to 29.43 reais. The benchmark Bovespa index dropped 1 percent.
Cosan, a renewable energy and infrastructure company, is paying 3.4 billion reais ($1.7 billion) for the stake in the company, according to a regulatory filing. The deal was announced earlier this month.
“Because Cosan doesn’t have experience in this business, the acquisition should not change Comgas’s strategies or operations,” Rodrigo Fernandes, an analyst at Fator Corretora, said by phone from Sao Paulo. “For Cosan, it is a good deal even though this business is different from its others because Comgas is a company that acts in a regulated market, has good cash generation and pays good dividends.”
Comgas fell 6.9 percent this year through yesterday, while Cosan gained 9.7 percent. The Bovespa slid 2.7 percent in that period.
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