French energy giant Total on Friday acquired 37.4 per cent stake in Gautam Adani-led Adani Gas, in a bulk deal worth Rs 5,152 crore.
Through the deal, Total Holdings SAS bought a stake from several Adani Group companies — including Adani Tradeline, Afro Asia Trade and Investments, S B Adani Family Trust, Universal Trade and Investments and Worldwide Emerging Market Holding.
In October last year, Total had announced its plans to buy Adani Group’s stake in Adani Gas through a mix of open offer and purchases from promoters. It was only on February 21 this year that the deal got the approval of the Petroleum and Natural Gas Regulatory Board (PNGRB).
The downstream regulator had raised doubts and issued a show cause notice, given there were restrictions in the restructuring of city gas distribution (CGD) companies within five years of the licence being granted. The nod to PNGRB was given considering the importance of foreign participation in the CGD segment, and the need to expand the country’s network.
Total had said late last year that CGD was a natural extension of the plans of both partners to invest in infrastructure and assets worth over $1 billion, which included Liquefied Natural Gas (LNG) infrastructure, as well as the marketing and fuel retail business.
Adani Group has city gas network operational in five cities, and has 84 compressed natural gas (CNG) stations in these areas.
It is also in the process of setting up a network in 14 other geographical areas (GA). It has eight operational GAs in a joint venture with Indian Oil Corporation (IOC), while 11 are in the implementation stage.
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.
Source: Business-Standard