Babcock subsidiary sheds gas firm at €13m loss(3)

International Energy Group is selling a Portuguese gas company at a loss as it scrambles to reduce its debt mountain

Babcock & Brown’s bid to reduce its debts has led to one of its subsidiaries offloading a Portuguese gas company for a loss of €13 million.

The International Energy Group (IEG) is selling Gascan, which runs a series of liquid petroleum gas networks across Portugal, to the local Fundo Explorer II, a fund managed by Explorer Investments.  The Portuguese Competition Authority must approve the deal.

Babcock & Brown, which recently went into administration, has put emphasis on divesting “non-core” assets to free up liquidity.