Total purchases 37.4 per cent of Adani Gas for more than Rs 5,500 crore
NEW DELHI: French energy giant total has acquired a 37.4 per cent stake in Adani Gas for more than Rs 5, 500 crore, according to a statement from the company on Monday.
This will be the largest foreign direct investment (FDI) in India’s burgeoning city gas distribution sector, with both total and the Adani Group ending up with 37.4 per cent stake each.
The Adani family currently holds a 74.8 per cent stake in Adani Gas.
“Total will purchase 37.4 per cent shares in Adani Gas Ltd through a tender offer to public shareholders to acquire up to 25.2 per cent shares subject to applicable regulations and purchase the residual shares from Adani Family,” it said.
According to Adani, the partnership and equity support from the partners will help Adani Gas Limited accelerate project executions in all its new geographical areas, while Adani Gas shall also pursue a fuel retail business in India and with a target to establish 1,500 fuel stations.
Adani Gas will also set up 1,500 compressed natural gas (CNG) stations for gas distribution over the next ten years in it and its joint venture’s geographical areas in 71 districts, 68 towns spread across 15 states in India.
Adani Gas is already the country’s biggest private city gas distribution company with exclusive authorisation to develop infrastructure, operate and market gas in 38 geographical areas and supply both piped natural gas and CNG to customers.
“Total’s investment in Adani Gas reinforces the country’s natural gas and demand potential. The partnership will derive significant synergies between Adani’s capabilities of developing world-class assets and Total’s global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution,” said Gautam Adani, chairman, Adani Group.