Total Completes Acquisition Of 37.4% Stake In Adani Gas For US$727.5 Million - MarketLine
03-Mar-2020 04:39:57 AM
Total SA, an energy company, has completed the acquisition of a 37.4% stake (41.13 crore shares) in Adani Gas, an Indian gas distribution company, from Adani Tradeline, Afro Asia Trade and Investments, S B Adani Family Trust, Universal Trade and Investments and Worldwide Emerging Market Holding, for a purchase consideration of Rs 5,152 crore. Adani Gas, an arm of Adani Group, operates a distribution pipeline network of over 6,000 km and caters to nearly 350,000 retail customers. It runs city gas distribution in five geographies —Ahmedabad, Baroda, Faridabad, Khurja and Palwal. Following the transaction, Adani Family and Total SA hold 37.4% stake each and public shareholders hold remaining 25.2% stake in Adani Gas. Citigroup Global Markets India Private Limited acted as financial advisor while Latham & Watkins LLP acted as legal advisor to Total in the transaction. The transaction is in line with Total's development strategy to become the responsible energy major. "Energy needs in India are immense and the Indian energy mix is key to the climate change challenge. Firmly investing to develop the use of natural gas in India is in line with Total's ambition to become the responsible energy major. The natural gas market in India will have a strong growth and is an attractive outlet for the world's second-largest LNG player that Total has become. Adani will bring its knowledge of the local market and its expertise in the infrastructure and energy sectors. This partnership with Adani is cornerstone to our development strategy in this country." said Patrick Pouyanne, Chairman and CEO of Total. Speaking on the occasion, Adani Group Chairman, Mr. Gautam Adani, said, "Adani is delighted to deepen its strategic partnership with Total, a global energy major, to one of the largest downstream gas partnerships in India. Total's investment in Adani Gas reinforces India'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. We look forward to working together towards delivering India's vision for clean and green energy." Deal history Update 2: On February 20, 2020, the Petroleum and Natural Gas Regulatory Board (PNGRB) approved the transaction. Update 1: On February 5, 2020, Adani Gas's CEO Suresh P Manglani commented that the transaction is expected to complete by March 31, 2020. Update: On November 28, 2019, the Competition Commission has approved the acquisition of 37.4% shareholding and joint control by Total in Adani Gas. Announced: On October 14, 2019, Total has signed definitive agreement to acquire a 37.4% stake in Adani Gas for a consideration of approximately Rs. 5,662 crore (US$810 million). Rumor: On June 14, 2019, Total intends to acquire a 30% stake in Adani Gas, an Indian gas distribution company, for more than INR5,500 crore ($800 million), according to people familiar with the matter.
The transation is in line with Total's development strategy to become the responsible energy major.
Deal In Brief