Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Energy/  Adani Gas gets Total on board in 5,700-crore deal for a 37.4% stake
BackBack

Adani Gas gets Total on board in ₹5,700-crore deal for a 37.4% stake

Eventually, Adani and Total will hold a 37.4% stake each and public shareholders will hold the remaining 25.2%
  • On Monday, shares of Adani Gas surged 9.26% to ₹150.40 on BSE
  • The proposed acquisition also marks the largest foreign direct investment in India’s city gas distribution industry, with the deal giving Total joint control of Adani Gas, along with the Adani group (Photo: Bloomberg)Premium
    The proposed acquisition also marks the largest foreign direct investment in India’s city gas distribution industry, with the deal giving Total joint control of Adani Gas, along with the Adani group (Photo: Bloomberg)

    Mumbai: Total SA has agreed to acquire a 37.4% stake in city gas distributor Adani Gas Ltd for around 5,700 crore, in the French energy major’s biggest bet on India’s clean energy push.

    The proposed acquisition also marks the largest foreign direct investment in India’s city gas distribution industry, with the deal giving Total joint control of Adani Gas, along with the Adani group.

    Total, the world’s second-largest liquefied natural gas company, will buy the stake in Adani Gas through a combination of tender offer to public shareholders and from the Adani family, Total said in a press statement on Monday. The French company plans to acquire as much as 25.2% from the public and the rest from the Adani family.

    Eventually, the Adani family and Total shareholders will hold 37.4% stake each and public shareholders will hold the remaining 25.2%. Publicly traded companies in India have to maintain a minimum public shareholding of 25%.

    The Adani family owns a 74.8% stake in Adani Gas, which was listed on 5 November 2018. On Monday, shares of Adani Gas surged 9.26% to 150.40 on BSE.

    The expanded partnership will develop re-gasification terminals, including Dhamra LNG on the east coast, sell liquefied natural gas (LNG) and through Adani Gas distribute gas to 7.5% of India’s population. The latest announcement comes a year after the two firms agreed to set up an equal joint venture to import and retail natural gas. As part of that, Adani and Total will build a fuel retail network of 1,500 stations along highways and intercity connections over 10 years.

    Nicholas Browne, research director at consultant Wood Mackenzie said, “Adani is attractive to Total for several reasons. Firstly, the development of the Mundra and Dhamra regasification terminals provides Total with market access for LNG. Secondly, Adani Gas was an active bidder in the recent distribution auction rounds. In turn, this will provide Total with a firm demand for gas. Lastly, developing a standalone gas marketing and distribution business in India would take several years."

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 14 Oct 2019, 09:31 AM IST
    Next Story footLogo
    Recommended For You
    Energy Stocks
    ₹1,824.250.53%
    ₹166.250.9%
    ₹516.82.34%
    ₹88.561.21%
    ₹330.651.6%
    Switch to the Mint app for fast and personalized news - Get App