French oil major Total SA has signed a definitive agreement to buy 37.4% stake in Gautam Adani-led Adani Gas for about Rs 5,700 crore.
Total will purchase the shares in Adani Gas through a tender offer to public shareholders to acquire up to 25.2% shares, subject to applicable regulations and purchase the residual shares from Adani Family.
The company said that CGD is a natural extension of the plans of both partners to invest in infrastructure and assets worth over $1 billion, which span Liquefied Natural Gas (LNG) infrastructure and marketing and fuel retail business, announced in October 2018.
Adani Gas is also planning to set up 1,500 fuel stations offering top of the line products in the coming years. The expanded partnership will develop regasification terminals including Dhamra LNG, on the East coast of India; market LNG to the Indian markets and through Adani Gas, target to distribute gas to 7.5% of India’s population.
“Both partners would make significant investments in the next 10 years across the businesses to develop India’s gas infrastructure, distribution, marketing businesses with a presence in over 15 states,” it said. These geographical areas will cover 71 districts too.
Adani Gas and its joint venture will distribute gas to six million households in the next decade. Adani Gas CNG network will be developed exploring synergies including co-location of fuel retail and CNG outlets, the statement added.
Speaking on the occasion, Adani Group Chairman, Gautam Adani, said, “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. We look forward to working together towards delivering India’s vision for clean and green energy.”
By special arrangement with Business Standard.