Total to Pick Up 30% Stake in India's Adani Gas: Report
French major Total is expected to pick up 30% stake in Indian city gas distribution (CGD) firm Adani Gas for over $800mn, Times of India reported June 14.
The deal, likely to be announced soon, is expected to trigger an open offer to public shareholders. After that, promoter Gautam Adani and Total might have equal stake in the company. So, the deal size could be well above $1bn, the newspaper reported. Adani owns 75% stake in Adani Gas which was listed on the stock exchanges recently.
The company, a part of Adani Group, recently won additional geographical areas (GA) in the ninth and tenth rounds of CGD bidding. With these wins, Adani Gas is now authorised for 19 GAs and its joint venture with Indian Oil is now authorized for 19 GAs for natural gas network development and distribution, making it one of the leading CGD players in the country.
Adani Gas is currently operating CGD network in five locations: Ahmedabad, Baroda, Faridabad, Khurja and Palwal. Its joint venture with Indian Oil is currently running CGD networks at Prayagraj, Chandigarh, Panipat, Udham Singh Nagar, Daman, Dharwad, Ernakulam and Bulandshahr.
Last year Total and Adani Group announced they will jointly develop LNG terminals and fuel retail outlets in India.