New Delhi, October 14
A year after stitching an alliance with billionaire Gautam Adani for foray into lucrative Indian market, French energy giant Total SA on Monday announced buying a 37.4% stake in Adani Gas Ltd —the firm that retails gas to automobiles and households, for an estimated Rs 5,700 crore.
Total, which in August 2018 exited a JV with Royal Dutch Shell in a 5 million tonne liquefied natural gas (LNG) import terminal at Hazira in Gujarat, had in October last formed a 50:50 JV for two LNG import terminals of Adani on the east and west coast of India as well as for setting up of 1,500 petrol pumps in the country over 10 years.
Adani Group in a separate statement said city gas distribution is a natural extension of the plans of both partners to invest in infrastructure and assets worth over $1 billion, which span LNG infrastructure and marketing and fuel retail business, announced in October 2018.
The French firm is the latest energy major seeking to expand its presence in India, which is the world’s third-largest and the fastest-growing energy consumer. In August, Reliance Industries said Saudi Arabian Oil Co will buy 20% of its oil-to-chemical business at an enterprise value of $75 billion.
Total will first make an open offer to buy a 25.2% stake in Adani Gas. Depending upon the success in the open offer, it will buy a stake from Adani to take its holding to 37.4% in the company. Adani family holds 74.8% stake in Adani Gas and will dilute shares to the public to bring down its holding to 37.4% — at par with Total, the two firms said. — PTI