Off-pipeline Brazilian gas distribution company NEOgás is considering non-binding offers for its Mexican subsidiary, said two sources familiar with the situation.
NEOgás and its subsidiaries in Colombia, Mexico, Peru and the USA provide compressed natural gas distribution services to industrial, vehicular, and residential sectors and to power generation projects that are not connected to gas pipelines.
Lazard is assisting NEOgás with the sale process and received non-binding bids for the subsidiary company in early December 2019, the sources said.
NEOgás is majority-owned by US-based private equity fund manager Global Environment Fund, which has invested in the company since 2008, according to its website.
The International Finance Corporation and its African, Latin American and Caribbean Fund invested USD 20m in the company between 2013 and 2016. Darby Overseas Investments’ USD 300m Latin American Private Debt Fund III also invested in the company in 2018.